configuration fico

Configuration of FICO Modules

Confidential Designed & Reviewed by Srinivas

SAP: Systems and Application Products in Data Processing

What is SAP R/3

• A series of highly integrated core business application modules for business processing• A set of modules that implement multinational best business practices• Client/server software that processes business transactions• R/3 stands for Real Time Three Tier Architecture

The History

SAP is founded in 1972 by Wellenreuther, Hopp, Hector, and Plattner & Tchira. The first module for Finance (FI) was developed for Naturin (an IBM customer). The first customer for SAP was Imperial Chemical Industries (ICI). R2 – Mainframe based package with more than 2000 sites. R3 –Client/Server 3-Tier Architecture based introduced in 1992. More than 44,500 installations for R3 across 50 countries

Characteristics of SAP

Ø Incorporates 30 years of experience with international orientationØ Rich in functionality and highly configurableØ tight integration across modulesØ Minimum data redundancy, maximum data consistencyØ Advanced planning and optimization

SAP Modules - At a Glance



FI : - FinanceCO : - Controlling

Finance – Modules

This module is designed for automated management and external reporting of general ledger, accounts receivable, accounts payable, and other sub-ledger accounts.

Co- Controlling Module

Controlling provides you with information for management decision-making. It facilitates coordination, monitoring and optimization of all processes in an organization. This involves recording both the consumption of production factors and the services provided by an organization.

Controlling (CO) and Financial Accounting (FI) are independent components in the SAP system. The data flow between the two components takes place on a regular basis.

FI- Finance

General Ledger Accounting

Accounts Receivables Asset Accounting Accounts Payable

Closing Activities Financial Statement

Version

Integrated with Material Management

(P2P)

Integrated with Sales and Distribution

module

Integrated with General Ledger and

Controlling activities for settlement

Controlling

Cost Element Accounting

Internal Order Profit Centre Accounting

Cost Centre Accounting

Basic Setting for Controlling

Profitability Analysis



Organization Structure

Group Company (in SAP it is called as

Company

Company Code Company Code Company Code

Business Area Business Area Business Area

Functional Area

Functional Area

Functional Area



Basic Settings

1 Creation of Company

2 Creation of Company Code

3 Assignment of Company Code to Company

4 Creation of Business Area

5 Creation of Functional Area

6 Maintain Fiscal Year Variant (OB29)

7 Assign Company Code to Fiscal Year Variant (OB37)

8 Define Chart of Accounts

9 Assign Company Code to Chart of Accounts (OB62)

10 Define Account Groups (OBD4)

11 Define Retained Earnings Account (OB53)

12 Define Posting Period Variant (OBBO)

13 Assign Variants to Company Code (OBBP)

14 Open & Close Posting Periods (OB52)

15 Define Document Types & Number Ranges (OBA7)

16 Define Tolerance Groups for GL Accounts (OBAO)

17 Define Tolerance Groups for Employees (OBA4)

18 Define Field Status Variant

19 Assign Company Code to Field Status Variant (OBC5)

20 Enter Global Parameters (OBY6)

Creation of CompanySPRO à Enterprise Structure à Definition à Financial Accounting àDefine CompanySelect the New Entries Give the Company IBSName: Indian Business Solutions limited

Company: Smallest organizational unit for which individual financial statements can be drawn up according to the relevant commercial law. A company can consist of one or more company codes. All company codes within a company must use the same transaction chart of accounts and the same fiscal year breakdown. The company code currencies, on the other hand, can be different. A company code has one local currency in which its transaction figures are recorded.

Creation of Company CodeSPRO à Enterprise Structure à Definition à Financial Accounting à Define, Copy, Delete, Check Company Code



Give the Company Code: IBSDescription: India business Solutions Give the Address, Currency, Country and Save

Company Code: The smallest organizational unit for which a complete self-contained set of accounts can be drawn up for the purposes of external reporting. The process of external reporting involves recording all relevant transactions and generating all supporting documents required for financial statements (balance sheets, profit and loss statements and so on.)

Assignment of Company Code to Company

SPRO à Enterprise Structure à Assignment à Financial Accounting à Assign Company Code to Company

Ø Select Position button Ø Give your Company Code IBS and assign to Company Save

Creation of Business AreaSPRO à Enterprise Structure à Definition à Financial Accounting à Define Business Area

• Select new Entries • Give the business Area: HYD• Description: Business Area for HYD

Save

Business Area: Organizational unit of financial accounting that represents a separate area of operations or responsibilities within an organization and to which value changes recorded in Financial Accounting can be allocated. Business areas are used in external segment reporting (over and above company codes) based on the significant areas of operation (for example, product lines) of a business enterprise. A segment is an isolated area of activity.

All essential balance sheet items, such as fixed assets, receivables, payables, and inventories, and all items of the profit and loss statement can be assigned directly to a business area. The balance sheet items for banks, capital, and taxes, however, cannot be directly assigned to business areas. They need to be assigned manually. This means that business area financial statements cannot be drawn up for commercial and tax law. Business area balance sheets and income statements are used only for internal reporting purposes.

The system determines the appropriate business area from information such as the material, plant, or cost center we enter in a business transaction like a goods movement. Assignments we make (between cost centers and business areas for example) or the combination of information we specify (a plant and a particular division for example) are the basis on which the system determines the appropriate business area.



Maintain Fiscal Year Variant (OB29)

SPRO à Financial Accounting à FAGS à Fiscal Year à Maintain Fiscal Year Variant (Maintain Shortened Fiscal Year)

• Select the New Entries • Give fiscal year Variant IB and Select the Calendar year Check Box• Normal periods are 12 and Special periods 4

Save

Assign Company Code to Fiscal Year Variant (OB37)

SPRO à Financial Accounting à FAGS à Fiscal Year à Assign Company Code to a Fiscal Year Variant

• Select the Position button • Give the fiscal year variant assigns and Save

Char of Accounts

Define Chart of Accounts Path: - SPRO à Financial Accounting à General Ledger Accounting à GL Accounts à Master Records à Preparations à Edit Chart of Accounts List

Select the New entries Give the Char of accounts : IBSDescription: Chart of Accounts for: IBSLength of GL Account Number: 06Controlling integration : Manual creation of Cost Elements

Save

The chart of accounts is a variant which contains the structure and the basic information about general ledger accounts.

Information to be given in Chart of Accounts: Maintenance Language, Length of GL Account Number, Manual or automatic creation of cost elements, Group chart of accounts etc.

Chart of Accounts

Group Chart of Accounts-Group level reporting purposes

Operational Chart of Accounts –for day to day operations of the

Company

Country Specific Chart of Accounts –According to the

Country Specific Law



Charts of accounts can have three different functions in the system:

• Operating chart of accounts

The operating chart of accounts contains the G/L accounts that you use for posting in your company code during daily activities. Financial Accounting and Controlling both use this chart of accounts.

You have to assign an operating chart of accounts to a company code.

• Group chart of accounts

The group chart of accounts contains the G/L accounts that are used by the entire corporate group. This allows the company to provide reports for the entire corporate group.

The assigning of a corporate group chart of accounts to a company code is optional.

• Country-specific chart of accounts

The country-specific chart of accounts contains the G/L accounts needed to meet the country's legal requirements. This allows you to provide statements for the country's legal requirements.

The assigning of a country-specific chart of accounts to a company code is optional

Integration

The operating chart of accounts is shared by Financial Accounting as well as Controlling. The accounts in a chart of accounts can be both expense or revenue accounts in Financial Accounting and cost or revenue elements in cost/revenue accounting.

Assign Company Code to Chart of Accounts (OB62)SPRO à Financial Accounting à General Ledger Accounting à GL Accounts à Master Records àPreparations à Assign Company Code to Chart of Accounts

• Select the position button • Give the chart of Accounts, assign and Save

Define Account Groups (OBD4)

SPRO à Financial Accounting à General Ledger Accounting à GL Accounts à Master Records àPreparations à Define Account Groups

Char of Accounts

Account Group

Name From Number To Number

IBS SHAR Share Capital 100000 100099IBS RESL Reverse & Surplus 100100 100199IBS CL&O Current liabilities & others 100200 100299IBS TERL Term Liabilities 100300 100399IBS LTL Long Term Liabilities 100400 100499IBS FIXD Fixed Assets 200000 200099



IBS Acc.D Acc. Depreciation 200100 200199IBS INVS Investments 200200 200299IBS CAOT Current Assets & Others 200300 200399IBS SALE Sales 300000 300099IBS OTHI Other Income 300100 300199IBS PURH Purchases 400000 400099IBS DIRE Direct Expenses 400100 400199IBS ADMN Admn. Expenses 400200 400299IBS DEP Depreciation 400300 400399IBS INT Interest 400400 400499SaveDefine Retained Earnings Account (OB53)

SPRO à Financial Accounting à General Ledger Accounting à GL Accounts à Master Records àPreparations à Define Retained Earnings Account§ Give the chart of Accounts N001§ Give the Profit & Loss : X§ Give GL Master : 100100 and Save

§Undistributed Profit we will transfer to the Reverse and Surplus Account Define Posting Period Variant (OBBO)

SPRO à Financial Accounting à FAGS à Document à Posting Periods à Define Variants for Open Posting PeriodsSelect the New Entries Give the posting Period variant: - IBSDescription: - Posting Period Variant for IBSSaveAssign Variants to Company Code (OBBP)Path: SPRO à Financial Accounting à FAGS à Document à Posting Periods à Assign Variants to Company CodeSelect the Position buttonGive the Company Code: IBSAssign the Posting period Variant: IBS Save



Open & Close Posting Periods (OB52)Path: - SPRO à Financial Accounting à FAGS à Document à Posting Periods à Open & Close Posting PeriodsTo define the periods those are open for postings.Posting period Variant

Account Type

From period

Fiscal year

To period

Fiscal year

From period

Fiscal year

To period

Fiscal year

N001 +( all the accounting Types)

01 2007 12 2007 13 2007 16 2007

Define Document Types & Number Ranges (OBA7)

SPRO à Financial Accounting à FAGS à Document à Document Header à Define Document Types

• Select the document type – SA• Select details button and give the company Code • Select change intervals button and insert interval button give the number ranges • Number range 01• Fiscal year: 2007 from number 000001 to 100000

Save & Close

Define Tolerance Groups for GL Accounts (OBAO)

SPRO à Financial Accounting à General Ledger Accounting à Business Transactions à Open Item Clearing à Clearing Differences à Define Tolerance Groups for GL Accounts

• Select the New Entries • Give the Company Code IBS • Description: Tolerance for IBS • Note: - don’t give the Tolerance Group Save

Define Tolerance Groups for Employees (OBA4)

SPRO à Financial Accounting à General Ledger Accounting à Business Transactions à Open Item Clearing à Clearing Differences à Define Tolerance Groups for Employees

Select the New Entries Give the Company Code: IBSAmount Per document: 999999999Amount per Open Item Account: 999999999Cash Discount: - 5.00Save



Define Field Status Variant

SPROà Financial Accounting à FAGS à Document à Line Item à Controls à Maintain Field Status Variants

• Select the Field Status Variant 0001 • Select Copy as button • Give Field Status Variant Name : IBS• Description : Field Status Variant for IBS

Save

Assign Company Code to Field Status Variant (OBC5)SPRO à Financial Accounting à FAGS à Document à Line Item à Controls à Assign Company Code to Field Status VariantSelect the position button Give the Company Code: IBSAssign field status Variant: IBS to Company Code Save

Enter Global Parameters (OBY6)SPRO à Financial Accounting à FAGS à Company Code à Enter Global Parameters

And Select the Check Box

Save

General Ledger Accounting

The central task of G/L accounting is to provide a comprehensive picture for external accounting and accounts. Recording all business transactions (primary postings as well as settlements from internal accounting) in a software system that is fully integrated with all the other operational areas of a company ensures that the accounting data is always complete and accurate.



The GL Master Can be created in Three Levels

Creation of GL Master Centrally (FS00)

Accounting à Financial Accounting à General Ledger à Master Records à Individual Processing àCentrally

• Select the New Entries • Give the GL Account: 100000• Give the Company Code: IBS• Give the Account Group: Share Capital, Shot Text: Share Capital Account• Long Text: Share Capital• Select the Control data • Select the line item display Check box• Give the Sort Key 001• Select the Create/bank/Interest tab• Field Status Group: G001

Creation GL Master (SBI Current Account)• Select the New Entries • Give the GL Account: 200300• Give the Company Code: IBS• Give the Account Group: SBI Current Account Shot Text: SBI Current Account • Long Text: SBI Current Account • Select the Control data • Select the line item display Check box• Give the Sort Key 001• Select the Create/bank/Interest tab• Field Status Group: G005• Select Relevant to Cash Flow Check box and Save

Save

General Ledger Master

Chart of Accounts level Company Code Level Central Level

a) Accounts Groupb) Short textc) Long Text

a) Currencyb) Sort key c) Field Status Group

Both the fields are available in central level



Posting of GL Transaction (F-02)Accounting à Financial Accounting à General Ledger à Document Entry àOthers à General Posting

• Give the Document date, Posting Date, Company Code: IBS, Currency: INR • Give the posting key: 40• Give the GL Account: 200300 (SBI Current Account) Enter • Give Amount: INR 100000• Text: Share application money • Give the posting key: 50• GL Account: 100000(Share Capital Account) Enter• Amount *• Text + • Enter

From Menu à Document – Simulate and Save

Display Document (FB03)Accounting à Financial Accounting à General Ledger à Document à Display

From menu à Document à Display

Display GL Account (FS10N)Accounting à Financial Accounting à General Ledger à Account à Display BalancesGive the GL Account Number 200300Company Code: IBSFiscal year : 2007Execute

To make a default Line Layout (FB00)Accounting à Financial Accounting à General Ledger à Environment à User Parameters à Editing Options

We can decide what data is displayed in this line by specifying the line layout. We can define several variants for line layout. When displaying a document, we can switch between the variants. We can define our own variant by selecting from Current Display Variant.

• Select the Change layout button• Select the Hidden fields • Select the left arrow• Select copy button

Enter

Save the Lay out



Display/ Changes to GL Master Records (FS04)Accounting à Financial Accounting à General Ledger à Master Records à Display Changes àCentrallyGive the GL Account Number 200300Give the Company Code: IBSSelect the Change button and change fields what ever you want Save

Blocking & Unblocking of GL Account (FS00)Accounting à Financial Accounting à General Ledger à Master Records à Display Changes àCentrallyFrom Menu à GL Account à Block/Unblock

Blocking: • Blocked for Creation• Blocked for Posting• Blocked for Planning• Blocked for Posting (in Company Code)

If you want unblock the GL Master please uncheck the all the above selections

Parked Documents

You can park data relating to customer, vendor, G/L, and asset accounts. There is an additional fast entry function for G/L accounts. For assets, you can only enter acquisitions. In addition, you can park tax information and special G/L indicators, although you cannot park special G/L indicators for bills of exchange and down payments



SAP provides two transactions for document parking: The standard transaction and the single screen transaction (Enjoy).

Document parking is linked to the account display and reporting functions in Financial Accounting. You can:

• Display parked documents in the document journal • Display parked documents in the line item display

Parking a GL Document (F-65)Accounting à Financial Accounting à General Ledger à Document Entry à Parked Document

• Give the Document date, Posting Date, Company Code: IBS, Currency: INR • Give the posting key: 40• Give the GL Account: 200300 (SBI Current Account) Enter • Give Amount: INR 100000• Text: Share application money • Give the posting key: 50• GL Account: 100000(Share Capital Account) Enter• Amount *• Text + • Enter

From Menu à Document à Parking

Display Parked Documents pending for approval and release (FBV3)Accounting à Financial Accounting à General Ledger à Document à Parked Documents à Display

Enter

Post/Delete Parked Documents pending for approval and release (FBV0)Accounting à Financial Accountingà General Ledger à Document à Parked Documents àPost/Delete(To change the amount – Double Click the amountTo change the date – Select Document Header ButtonTo change the GL Account – Delete Line Item and re-enter the new GL account Line Item)



Reversals

If you have entered an incorrect document, you can reverse it, thereby also clearing the open items.

A document can only be reversed if:

• It contains no cleared items• It contains only customer, vendor, and G/L account items• It was posted with Financial Accounting• All entered values (such as business area, cost center, and tax code) are still valid

Documents from SD can be reversed with a credit memo. Documents from MM must be reversed with functions in that component because the reversal function in FI does not reverse all the values required. For more information on reversals in SD and MM, see the documentation for those applications.

You generally post the reversal document in the same posting period as the corresponding original document. If the posting period of the source document has already been closed, you have to enter a date that falls in an open posting period (for example, the current one) in the Posting date field.

Creation of Reversal Reason for Individual ReversalSPRO à Financial Accounting à General Ledger Accounting à Business Transactions à Document Reversal à Define Reasons for Reversal(Reversal Reason is ‘03’ ‘Actual Reversal in Current Period’ & Select Alternative Posting Date)The reversal Reason will specify the why the document is reversing Document Reversal – Individual Reversal (FB08)Accounting à Financial Accounting à General Ledger à Document à Reverse à Individual Reversal

Reversal

Individual Reversal Reversal of Reversal

Mass Reversal Cleared Item Reversal

Accrual/Deferral Reversal



Select Display before Reversal Save

Reversal of Reversal (F-02)Accounting à Financial Accounting à General Ledger à Document Entry à Others à General PostingFrom Menu à Post with Reference Give the document Number Fiscal year 2007Select the check box general the Reversal posting

Mass Reversal (F.80)Accounting à Financial Accounting à General Ledger à Document à Reverse àMass Reversal

Cleared Item Reversal – Reset & Reverse (FBRA)Accounting à Financial Accounting à General Ledger à Document à Reset Cleared Items(Select ‘Resetting & Reverse’)Foreign Currency SettingsCurrencies:In Financial Accounting, we have to specify for each of the company codes, in which currency ledgers should be managed. This currency is the national currency of the company code, that is, the local currency (or company code currency). From a company code view, all other currencies are then foreign currencies. The ledgers can be managed in two parallel currencies in addition to the local currency, for example, group currency or hard currency. Group currency is used in the consolidated financial statements. Hard Currency or Country-specific second currency used in countries with high rates of inflation.Global company Currency: Currency used for an internal trading partner.Global company currency is defined when defining the company that is assigned to the company code.

Exchange Rate Types (OB07)SPRO à General Settings à Currencies à Check Exchange Rate Types

Exchange Rate Type: - Key used to define exchange rates in the system. For each currency pair we can define different exchange rates. The different exchange rates are used for the purposes of Valuation, Conversion, Translation, Planning etc.

Standard Translation at Bank Buying rate – G TypeStandard Translation at Bank selling rate – B TypeAverage rate – M TypeHistorical exchange rate - 1003

Define Translation Ratios for Currency Transactions (OBBS)SPRO à General Settings à Currencies à Define Translation Ratios for Currency Transactions(Define Ratios for G Type, B Type and M Type)Translation Ratio: The (consistent) relationship between the monetary units of two foreign currencies.



Enter Exchange Rates (OB08)SPRO à General Settings à Currencies à Enter Exchange Rates(Enter Exchange Rates for G Type, B Type and M Type)

Set Default Exchange Rate Type for Document Type SA (OBA7)SPRO à Financial Accounting à FAGS à Document à Document Header à OverviewSelect the Document Type: SA (GL Account Document)Select Details button Under Default Values give the Exchange Rate Type for forgn currency: B (Bank Buying) Save

Foreign Exchange Revaluation

G Type – Bank Buying• Open Item• Non Open Item

B Type – Bank Selling• Open Item• Non Open Item

We can create different valuation methods for valuing foreign currency. For each valuation method, we have to define:

• Parameters for the valuation procedure• Parameters for exchange rate determination

Define Valuation Methods (OB59)SPRO à Financial Accounting à GL Accounts à Business Transactions à Closing à Valuating àForeign Currency Valuation à Define Valuation Methods

• Give the Valuation Method: IBS• Description : Valuation method for IBS• Select always Valuate Check box• Give the Document type: SA • Debit Balance exchange Rate type: M (Average) • Credit Balance exchange Rate type: M (Average) • Select Determine rate type from account balance check box Save



Creation of GL Master - (FS00)Give the Chart of Accounts: IBSGive the Balance Sheet Account:

Forex Loss Account (Admn Group)Forex Gain Account (other Incomes) Balance sheet Adjustment Account (Assets /Liabilities)Prepare Automatic Postings for Foreign Currency Valuation (OBA1)

SPRO à Financial Accounting à GL Accounts à Business Transactions àClosing > Valuating > Foreign Currency Valuation > Prepare Automatic Postings for Foreign Currency Valuation

(Specify the GL Accounts of FC Loan, Forex Loss and Forex Gain in ‘Exchange Rate difference in Open Items’ KDF as well as in ‘Exchange Rate difference in FC Balances’ KDB and Specify ‘Exchange Rate Difference Key’ to be attached to the FC Loan Account in the next step)



Attach the ‘Exchange Rate Difference Key’ in FC Loan Account (FS00)

Forex Run on Closing Date (F.05)

Accounting à Financial Accounting à GL Accounts à Periodic Processing à Closing à Valuate àValuation of Open Items in Foreign Currency(Specify Valuation Method & Select ‘Balance Sheet Preparation Valuation’ for year end valuation postings. the entries will be posted automatically.)



Interest Calculations• S Type – Balance Interest Calculation (for GL Accounts)

o Is applied to the entire balance of a GL or Customer Account, applying a particular interest rate for a specified period of time

• P Type – Item Interest Calculation (for Customers & Vendors)o Interest on arrears is applied to individual items in accounts receivable or accounts

payable. A certain interest rate is applied to the items that are still open or unpaid at a specified date.

Interest calculation configuration:• Interest calculation Indicator

o Interest calculation types set basic parameters used in calculation. To calculate interest for an account (GL, Customer, Vendor), the master data for that account must include the interest calculation indicator that applies. Each interest ID must be assigned an interest calculation type, indicating whether it is used for balance interest calculation or item interest calculation.

• General terms



o General terms specify further parameters about how each interest calculation indicator works.

o Here we specify interest calculation ID, interest calculation frequency, settlement day, calendar type (G type for rupee loans & F type for FC loans).

• Define reference interest rateso Define reference interest rate ID, ‘effect from date’ and ‘currency’

• Time dependent termso Time-based terms set validity dates and relationships to interest rates. Here we specify

interest calculation ID, currency, valid from, sequence number (1&2), term (credit interest balance interest calculation for 1 & debit interest balance interest calculation for 2) and reference interest rate ID.

• Interest rateso Interest rates establish reference interest rates that interest calculations can be tied to.

Here we specify Reference interest rate ID, valid from and interest rate.• Account determination

o Account determination establishes which accounts the results of an interest calculation will be posted to.

Define Interest Calculation Types (OB46)

SPRO à Financial Accounting à General Ledger Accounting à Business Transactions à Bank Account Interest Calculation à Interest Calculation Global Settings à Define Interest Calculation Types

• Give the interest Calculation indicator : R1• Name : Balance interest Cal. Term • Give Calculation Type : S( Balance Interest Calculation )Save

Prepare Account Balance Interest Calculation (OBAA)

SPRO à Financial Accounting à General Ledger Accounting à Business Transactions à Bank Account Interest Calculation à Interest Calculation Global Settings à Prepare Account Balance Interest Calculation

• Give the Interest Calculation Indicator : R1• Give the Interest Calculation Freq : 01• Give the Calendar Type : G• Select Balance plus Interest Calculation Check box

SaveDefine Interest Reference Rates (OBAC)SPRO à Financial Accounting à General Ledger Accounting à Business Transactions à Bank Account Interest Calculation à Interest Calculation à Define Interest Reference RatesSelect the New Entries Give the Ref interest Rate : R2Long Text : Ref. interest rate typeShort Text : Ref. interest rate typeDate : 01-01-2007Currency : INR and Save



Define Time Dependant Terms (OB81)SPRO à Financial Accounting à General Ledger Accounting à Business Transactions à Bank Account Interest Calculation à Interest Calculation à Define Time Dependant TermsEnter Interest Values (OB83)

SPRO à Financial Accounting à General Ledger Accounting à Business Transactions à Bank Account Interest Calculation à Interest Calculation à Enter Interest ValuesSelect the New Entries buttonGive the Ref. Interest type: XXGive the Effective : 01/01/2007Give the Interest Rate : 10%Save

Creation of 2 GL Masters TC: FS00

1. SBI Term Loan Accounts – A/c group ( long term liabilities )Field status Group: G005Select Relevant to Cash Flow Check BoxGive the Interest Calculation Indicator: XXSave

2. Interest Account- Account Group ( Interest Account)Field status Group: G001Save

Assignment of Accounts for Automatic Interest Postings (OBV2)SPRO à Financial Accounting à General Ledger Accounting à Business Transactions à Bank Account Interest Calculation à Interest Posting à Prepare GL Account Balance Interest Calculation

(Account Symbol Currency GL Account0002 INR Interest Account Number (Expense)2000 + +++++++++0001 INR Interest Account Number (Income)1000 + +++++++++)

Term Loan Receipt – TC: F-02

Debit: Bank Account Credit: Term Loan Account Term Loan Repayment – TC: F-02

Debit: Term Loan Account Credit: SBI Current Account

Interest Calculation Run (F.52)

Accounting à Financial Accounting à General Ledger à Periodic Processing à Interest Calculation àBalancesGive the Chart of Accounts: IBSGive GL Account Number: ( SBI Term Loan Account)



Give the Company Code: IBSGive the calculation period: 01/01/2007 to 31/05/2007Select the Standard Interest Calculation Check box Select update Master Records Check boxGive the Session Name Give the Posting data of the Session From –menu à Execute in Background



FI-Accounts Payable

The Accounts Payable application component records and administers accounting data for all vendors. It is also an integral part of the purchasing system: Deliveries and invoices are managed according to vendors. The system automatically makes postings in response to the operative transactions. In the same way, the system supplies the Cash Management application component with figures from invoices in order to optimize liquidity planning.

Payables are paid with the payment program. The payment program supports all standard payment methods (such as checks and transfers) in printed form as well as in electronic form (data medium exchange on disk and electronic data interchange). This program also covers country-specific payment methods.

If necessary, dunning notices can be created for outstanding receivables (for example, to receive payment for a credit memo). The dunning program supports this function.

Postings made in Accounts Payable are simultaneously recorded in the General Ledger where different G/L accounts are updated based on the transaction involved (payables and down payments, for example). The system contains due date forecasts and other standard reports that you can use to help you monitor open items.

You can design balance confirmations, account statements, and other forms of reports to suit your requirements in business correspondence with vendors. There are balance lists, journals, balance audit trails and other internal evaluations available for documenting transactions in Accounts Payable.

Vendor Master Data

Business transactions are posted to accounts and managed using those accounts. You must create a master record for each account that you require. The master record controls how business transactions are recorded and processed by the system.

Specifications you make in master records are used:

• As default values when you post items to the account. For example, the terms of payment you specify in the master record are defaulted for document entry.

• For processing business transactions For instance, bank details and the payment methods (check or bank transfer, for example) are required for automatic payments.

• For working with master records. You can prevent certain users from accessing an account by setting up authorization groups.

Reconciliation accounts are managed implicitly using Sub Ledger Open Item function.Posting Keys

Vendor Debit : 25Vendor Credit : 31Document TypesKR – Vendor Invoice, KZ – Vendor PaymentKA – Vendor Document (Transfers/Reversals)



AP (Vendor Accounts) is a Subsidiary Ledger of Sundry Creditors. Sundry Creditors is a Reconciliation Account under Current Liabilities.

Basic Settings for Accounts Payable

a) Creation of Vendor Account Groups like FI Vendors (Services), MM Vendors (Materials) and One-time Vendors with Reconciliation Account Field mandatory.

b) Creation of Number Range Groups and Numbers for Vendors.c) Assignment of Number Range Group to Vendor Account Groupd) Creation of GL Masters ( Inventory Raw Materials – Current Assets )

a. (Sundry Creditors – Current Liabilities)e) Define Tolerance Groups for Vendors and Customers f) Creation of Vendor Master.g) Document Types and Number Ranges for KR, KZ and KA.h) Purchase Invoice Positingi) Display the Vendor Line item balances

Define Vendor Account Groups (OBD3)SPRO à Financial Accounting à Accounts Receivable and Accounts Payable à Vendor Accounts àMaster Records à Preparations for creating Vendor Master Records à Define Account Groups with Screen Layout (Vendors)

Select the New Entries Give the Vendor Group: NASDDescription: Domestic Vendors for NASSaveDouble Click the Company Code DataDouble Click the Account ManagementMake it reconciliation account is required entry and Cash management Suppress

The Vendor Account Group controls

The number ranges of the accounts, the status of the fields in the master record and whether the account is a one time vendor

One-time Vendor:

Vendors who have a business transaction only once are called one-time vendors. You create collective master record for one-time vendors. The complete details of the Vendor will be given at the time of Invoice Posting. (While creating the group a ‘One-time Vendor Group’ should be created.)



Create Number Ranges for Vendor Accounts (XKN1)

SPRO à Financial Accounting à Accounts Receivable and Accounts Payable à Vendor Accounts àMaster Records à Preparations for creating Vendor Master Records à Create Number Ranges for Vendor Accounts

Give the Company Code: NASSelect the Change Intervals ButtonSelect the insert intervals button Give the number rangers 02 2007 100000 300000Save

Assign Number Ranges to Vendor Account Groups (OBAS)

SPRO à Financial Accounting à Accounts Receivable and Accounts Payable à Vendor Accounts àMaster Records à Preparations for creating Vendor Master Records à Assign Number Ranges for Vendor Accounts

Ø Select the Position Button Ø Give the Vendor Accounts Group and Assign the Number range

Save

Define Tolerance Groups for Vendors (OBA3)

SPRO à Financial Accounting à Accounts Receivable and Accounts Payable à Business Transactions à Open Item Clearing à Clearing difference àDefine Tolerance for Customers /Vendors

Ø Select the New entries buttonØ Give the Company Code : IBSØ Save

Tolerances: Rules that define acceptable differences during postingTolerance Groups for Vendors:The tolerances are used for differences in payment and residual items which can occur during payment settlement. We can specify the tolerances under one or more tolerance groups. Allocate a Tolerance Group to each Vendor via the master record. For each Tolerance Group we specify:

1. Tolerances up to which differences in payment are posted automatically to expense or revenue account when clearing open items.

2. The handling of the terms of payment for residual items, if they are to be posted during clearing.Employee Tolerances also can be specified. Employee Tolerance is used to control the Upper limits for posting procedures (Posting Authorizations) and Permitted Payment Differences. While clearing, the lower limit of the 2 will be taken.



Creation of two GL Master – FS00

Sundry Creditors - Current Liabilities Reconciliation Account for Account type: VendorsSort Key : 018Field status Group : G067Save

Inventory Raw Material Account – Current Assets Sort Key: 001Field Status Group: G067Save

Creation of Vendor Master (XK01)Accounting à Financial Accounting à Accounts Payable à Master Records à Maintain Centrally àCreate

The account group is entered on the initial create screen. In FI, once the vendor account is created, its account group cannot be changed.Give Reconciliation Account Number, Sort Key 012 Vendor Name, Payment Terms, Tolerance Group & Select ‘Check Double Invoicing’)Save

Line item display and open item management are always preset to “on” for every vendor account.A complete Vendor Account consists of 3 segments – 1. General Data at the client level 2. Company code segment and 3. Purchasing Organization segment

General data consists Address, Control data, Payment transactions etc. The account number is assigned to the Vendor at the client level. This ensures that the account number for a Vendor is the same for all company codes and sales areas.

Company data consists of Accounting information, Payment transactions, Correspondence, Insurance, Withholding tax etc.

Note: If MM creates their segment of the master record and then FI creates their segments of the master record, there is the risk of creating incomplete or duplicate master records. To find and correct these incomplete accounts, we can run report RFKKAG00 and make the necessary corrections.

Creation of duplicate accounts can be prevented by:• Using the match code before creating a new account• Switching on automatic duplication check

Important Fields• Search Item: Should be filled with a short version of the vendor name according to company

rules/desires. An additional search field also can be filled up.• Group Key: Vendors who belong to one corporate group can be bundled together by a user-

defined group key. This group key can be used for running reports, transaction processing or for match codes.



• Accounting clerk: The accounting clerk’s name has to be stored under an ID and this ID can be entered in the vendor master record of the account he or she is responsible for. The accounting clerk’s name is then printed on correspondence and this ID is used to sort dunning and payment proposal lists.

Document Types & Number Ranges (OBA7)

SPRO à Financial Accounting àFAGS àDocument à Document Header à OverviewSelect the document type : KR Select the details Button Select the Number Range Information button Give the Company Code: IBS Sleet the change intervals button Give the Number ranges and SaveSame way for all the Number rages (Define Document Number Ranges for Doc Types KR, KZ & KA)Document type Number

RangeFiscal year From Number To Number

KZ 15 2007 200001 300000KR 19 2007 300001 400000KA 17 2007 400001 500000

Purchase Invoice Posting (F-43)

Accounting à Financial Accounting à Accounts Payable à Document Entry à Other à Invoice GeneralGive the Doc. Date, Company Code: IBS and Currency INRPosting Key: 31 Give the Vendor Accounts Number: 1000001EnterGive the Amount: 100000Text: Vendor Invoice posting Posting key 40 Accounts Number: 200100 (Inventory Raw Material)Amount * Text +Document à simulate and Save

Vendor Account Display (FBL1N) with Open Item, Cleared Item and Special GL Item details

Accounting à Financial Accounting à Accounts Payable à Account à Display/Change Line Items

Give the Vendor Account Number: 100000Give the Company Code: IBSSelect the open Items Button Execute Note: Once you make the payment to vendor if you want to see the vendor line item balance (Cleared items) select all items button



Vendor Account Display (FK10N)

Give the Vendor Number: 200001Give the Company Code: IBSFiscal Year: 2007Execute

Outgoing Payments

Define House Bank and Assign GL Account Number for the Account ID (FI12)SPRO à Financial Accounting à Bank Accounting à Bank Accounts à Define House BanksGive the Company Code



House Banks: Bank ID, Bank Account, Account ID and GL Account Number SaveCreation of Check Lots (FCHI)Accounting à Financial Accounting à Accounts Payable à Periodic Processing à Payments à (sub menu) à Environment à Check Information à Number Ranges

Give the Paying Company Code: IBSGive the House Bank : SBIGive the House Bank Account ID: SBICCSelect change button and Select Create button Give the Check lot Number: 101Give the Check Numbers: 100000 to 200000Save(Select ‘Non-Sequential’ for manual payments & don’t select for Automatic Payment Program)

Outgoing Payment with clearing (F-53)Accounting à Financial Accounting à Accounts Payable à Document Entry à Outgoing Payment àPost

Give the Doc. Date, Company Code: IBS and Currency INRPosting Key: 31 Give the Bank Account Number: 200100Give the Amount: 100000Text: Incoming payment Vendor Accounts Number: 100000Select Process open items button Document à simulate and Save

Manual Check Updating (FCH5)

Accounting à Financial Accounting à Accounts Payable à Environment à Check Information àCreate àManual Checks(Enter Payment Document Number, House Bank & Bank ID and Check Number) and Enter Give the Check Number and Save

Display Check Register (FCHN)Accounting à Financial Accounting à Accounts Payable à Environment à Check Information àDisplay à Check RegisterGive the paying Company Code : IBSHouse Bank : SBIGive the Bank Account ID : SBICC Execute



Check Encashment Date (FCH6)

Accounting à Financial Accounting à Accounts Payable à Environment à Check Information àChange à Additional Info/CashGive the paying Company Code: IBSHouse Bank : SBIGive the Bank Account ID : SBICC à Enter Give the Check encashment Date: 30/05/2007Save

Define Void Reason Codes (FCHV)

SPRO à Financial Accounting à Accounts Receivable and Accounts Payable à Business Transactions à Outgoing Payments à Automatic Outgoing Payments à Payment Media à Check Management àDefine Void Reason Codes

Give the Reason: 01Give the Void Reason Code: Ripped during Printing Reserved for Print Programs: Page overflowSaveUnused Checks Cancellation (FCH3)

Accounting à Financial Accounting à Accounts Payable à Environment à Check Information à Void à Unused ChecksGive the paying Company Code : IBSGive the House Bank : SBIGive the Account ID : SBICCGive the Check Number : 100000Give the Void Reason Code : 01Select Void and Save

Issued Checks Cancellation (FCH8)Accounting à Financial Accounting à Accounts Payable à Environment à Check Information à Void à Cancel PaymentGive Check Number, Void Reason Code, Document Reversal Reason and Select ‘Cancel Payment’ Button)Result: Resets the cleared item, Cancels the Check and Reverses the Payment

Down Payments to Vendors

You normally enter and post down payments made or received after the amount is debited or credited to your bank account and is shown on your bank statement.Down payments can be processed in two ways



Posting a Down Payment without a Down Payment Request, Posting a Down Payment with a Down Payment Request and Other Functions: Down Payments

Special GL Transaction

Special G/L transactions are special transactions in accounts receivable and accounts payable that are displayed separately in the general ledger and the sub ledger. This may be necessary for reporting or for internal reasons. For example, down payments must not be balanced with receivables and payables for goods and services. Consequently, they are treated as special G/L transactions in the General Ledger (FI-GL) Accounts Payable (FI-AP) and Accounts Receivable (FI-AR) application components.

Special G/L transactions are special transactions in accounts receivable and accounts payable that are displayed separately in the general ledger and the sub ledger. This is achieved by posting to alternative reconciliation accounts, instead of posting to the reconciliation accounts for receivables and payables.

The following special G/L transactions are available:

1. Down payments and down payment requests2. Bills of exchange receivable, bills of exchange payable and checks/bills of exchange3. Bank bills, Payment requests, Guarantees, Reserves for bad debt and Security deposits

Configuration Settings

• Create Special GL Account ‘Advance to Vendors (Reconciliation Account)’ under Current Assets• Create Link between ‘S/Creditors’ and ‘Advance to Vendors’ (Special GL Indicator: A)• Down Payment Posting• Purchase Invoice Posting• Transfer of Down Payment from Special GL to Normal item by clearing Special GL Account• Clearing of Normal Item

Creation of GL Master – Advance from Vendors – FS00Give the Company Code: IBS and GL Account Number: 200105 à (Select the Create Button)A/c Group: Current Assets & Others Description: Advance from Vendors Reconciliation Account: - Vendors, Sort Key: 012 and Filed Status Group: G067Save

Link between S/Creditors and Advance to Vendors (OBYR)

SPRO à Financial Accounting à Accounts Receivable and Accounts Payable à Business Transactions à Down Payment made à Define Alternative Reconciliation Account for Down Payments

• Double Click Special GL Indicator : A ( Down Payment on Current Assets) • Give the chart of Account: IBS Reconciliation Account – Sundry Creditors Special GL Transaction - Advance to Vendor

Save



(

Setup Company Code for Payment Transaction (To avoid Short Dump Error while posting Down Payments)

SPRO à Financial Accounting à Accounts Receivable and Accounts Payable à Business Transactions à Outgoing Payments à Automatic Outgoing Payments à Payment method/Bank selection for Payment Program à Setup all Company Codes for Payment Transactions

• Give the Company Code: IBS• Give Paying Company Code: IBS • Select the Maxi. Cash Discount Check Box • Save



Down Payment Posting (F-48)Accounting à Financial Accounting à Accounts Payable à Document Entry à Down Payment àDown PaymentGive the Document Date: 30/05/2007Give the Company Code: IBS, Currency INRGive Bank Account: 200100 and àGive Special GL Indicator “A”Amount: 100000 and à Give the Vendor number 200001Text: Advance payment to Vendor Select Display Document over View button à Amount * and Text + document à simulate and Save

Purchase Invoice Posting (F-43)

Accounting à Financial Accounting à Accounts Payable à Document Entry à Other à Invoice GeneralGive the Doc. Date, Company Code: IBS and Currency INRPosting Key: 31 Give the Vendor Accounts Number: 1000001EnterGive the Amount: 100000Text: Vendor Invoice posting Posting key 40 Accounts Number: 200100 (Inventory Raw Material)Amount * Text +Document à simulate and Save

Transfer of Down Payment from Special GL Account to Normal item by clearing Special GL Account (F-54)Accounting à Financial Accounting à Accounts Payable à Document Entry à Down Payment àClearingGive the Document Date: 30/05/2007, Company Code: IBN and Currency: INRGive the Vendor Account: 100001Select the Process Down payment button Give the Transfer Amount: 100000Document à Simulate and Save

Clearing of Normal Item (F-44)Accounting à Financial Accounting à Accounts Payable à Accounts à ClearGive the Vendor Number: 1000001Select the process Open Items buttons, double click both the line items àFrom Menu à Document àSimulate and save



Extended Withholding Tax (TDS)

In Accounts Payable, the vendor is the person subject to tax, and the company code is obligated to deduct withholding tax and pay this over to the tax authorities on their (the vendor’s) behalf.

At the time of Invoice PostingService Charges A/c. Dr. 100000

To Contractors A/c. 98000To TDS A/c. 2000

At the time of Advance Payment PostingContractors A/c. Dr. 100000

To Bank A/c. 98000To TDS A/c. 2000

Withholding Tax

With extended withholding tax, you can process withholding tax from both the vendor and customer view.

In Accounts Payable, the vendor is the person subject to tax, and the company code is obligated to deduct withholding tax and pay this over to the tax authorities on the vendor’s behalf. In Accounts Receivable, the company code itself is subject to tax, and the customers that do business with this company code deduct withholding tax and pay this over to the tax authorities on the company code’s behalf. In both cases, the business partner of the person/entity subject to tax deducts the tax and pays it over to the tax authorities.

Withholding tax is calculated and posted to the appropriate withholding tax accounts at different stages, depending on the legal requirements in each country. As a rule, withholding tax is posted at the same time that the payment is posted, in other words the outgoing payment (Accounts Payable) or incoming payment (Accounts Receivable), is reduced by the withholding tax amount.

Classic and Extended Withholding Tax Functions

Individual Functions Classic Withholding Tax

Extended Withholding Tax

Withholding tax on outgoing payment X XWithholding tax on incoming payment XWithholding tax posting at time of payment X XWithholding tax posting at time of invoice XWithholding tax posting on partial payment XNumber of withholding taxes for each document item

Max. 1 Several

Net amount X XModified net amount XGross amount X X

Withholding tax base:

Tax amount X



Individual Functions Classic Withholding Tax

Extended Withholding Tax

Modified tax amount XRounding rule XCash discount considered XAccumulation XMinimum/maximum amounts and exemption limits XNumber assignment on document posting (certificate numbering)

X

Calculation formulas X X

Country-Specific Requirements

Due to legal requirements, the following countries use extended withholding tax:

America Europe and Africa Asia/PacificArgentina United Kingdom IndiaBrazil Slovakia The PhilippinesChile Turkey South KoreaColombia ThailandMexicoPeruVenezuela

Check the With Holding Tax Countries

SPRO à Financial Accounting à FAGS à Withholding Tax à Extended Withholding Tax à Basic Settings à Check Withholding Tax CountriesSelect the Position ButtonGive the Country IN (Check and Save)

Define Withholding Tax Type for Invoice Posting

SPRO à Financial Accounting à FAGS à Withholding Tax à Extended Withholding Tax àCalculation àWithholding Tax Type à Define Withholding Tax Type for Invoice Posting

• (Give a name for Type & Description like 2% TDS on Contractors Invoice Posting• Base Amount à Select ‘Gross’• Rounding Rules à Select ‘Withholding Tax Commercial Rounding’• Select ‘Post Withholding Tax amount’• Accumulation Type à Select ‘No Accumulation’• Control Data à Select ‘Withholding Tax Base Manual’ (This should not be selected while creating

the Type for Payment Posting)• Select ‘No Certificate Numbering’)Save



Define Withholding Tax Type for Payment Posting

SPRO à Financial Accounting à FAGS à Withholding Tax à Extended Withholding TaxàCalculation àWithholding Tax Type à Define Withholding Tax Type for Payment Posting

• (Give a name for Type & Description like 2% TDS on Contractors Invoice Posting• Base Amount à Select ‘Gross’• Rounding Rules à Select ‘Withholding Tax Commercial Rounding’• Cash Discount à Select ‘Cash Discount Pre-withholding tax’

• Select ‘Post Withholding Tax amount’• Accumulation Type à Select ‘No Accumulation’• Do Not Select ‘Withholding Tax Base Manual’ (This should be selected while creating the Type

for Invoice Posting)• Select ‘No Certificate Numbering’)

Save

Define Withholding Tax Codes

SPRO à Financial Accounting -à FAGS à Withholding Tax à Extended Withholding Tax àCalculation àWithholding Tax Codes à Define Withholding Tax Codes

• (Withholding Tax Code: Give a Code• Base Amount à Percentage Subject to Tax: 100%• Calculation àWithholding Tax Rate: Give the applicable Rate• Postings à Posting Indicator: 1 (Standard Posting Bank/Vendor/Customer Line Item reduced))

Save

Define Formulas for calculating Withholding Tax

SPRO à Financial Accounting à FAGS à Withholding Tax à Extended Withholding Tax àCalculation àWithholding Tax Codes à Define formulas for calculating Withholding Tax

• (Give Withholding Tax Type & Code• Valid from: Give the date (Fiscal Year start date)• Select the Line created and double click ‘Formulas for calculating Withholding Tax’• ‘To’ Base amount: Rs. 999999999• Withholding Tax: Give the applicable Rate)

SaveAssign Withholding Tax Types to Company Codes

SPRO à Financial Accounting à FAGS àWithholding Tax à Extended Withholding Tax à Company Code à Assign Withholding Tax Types to Company Codes

(Assign all the Withholding tax Types to Company Code)

Activate Extended Withholding Tax

SPRO à Financial Accounting à FAGS àWithholding Tax à Extended Withholding Tax à Company Code à Activate Extended Withholding Tax



• Select the Position button • Give the Company Code: IBS • Activate the Extended with holding Tax check Box• Save

Define Accounts for Withholding Tax to be paid over (OBWW)

SPRO à Financial Accounting à FAGS àWithholding Tax à Extended Withholding Tax à Postings à Accounts for Withholding Tax à Define Accounts for Withholding Tax to be paid over

(Assign TDS on Contractors, TDS on Rent, TDS on Interest etc. open item managed accounts created under Current Liabilities to the respective Tax Type and Code)

Select Account button



Assigning Withholding Tax Codes in Vendor Master (XK02)Accounting à Financial Accounting à Accounts Payable à Master Records à Maintain Centrally àChange

Enter



Give the Withholding Tax Code Save

Vendor Statement of AccountAssign Programs for Correspondence (OB78)

SPRO à Financial Accounting à Accounts Receivable and Accounts Payable à Vendor Accounts àLine Items à Correspondence à Carryout and Check Correspondence Settings à Assign Programs for Correspondence

(Select ‘SAP06’ Account Statement, Copy As and Attach the Statement Type to Company Code & Save)

Request for Correspondence (FB12)Accounting à Financial Accounting à Accounts Payable à Account à Correspondence à Request(Select ‘SAP06’, Give Vendor A/c. No. & specify statement period. Select ‘Continue’)

Maintain Statement (F.64)Accounting à Financial Accounting à Accounts Payable à Account à Correspondence à Maintain Statement(Correspondence: SAP06, Company Code: XYZ, Account Type: K, Execute and Double click anywhere on the report & the statement is displayed)

Terms of Payment & Cash DiscountsMaintain Terms of Payment (OBB8)



SPRO à Financial Accounting à Accounts Receivable and Accounts Payable à Business Transactions à Outgoing Invoices/Credit Memos àMaintain Terms of Payment

Terms of payment are conditions established between business partners to settle the payment of invoices. The conditions define the invoice payment due date and the cash discount offered for early settlement of the invoice.

Give the Payment Methods and Save

Define Accounts for Cash Discounts taken (OBXU)SPRO à Financial Accounting à Accounts Payable and Accounts Receivable à Business Transactions à Outgoing Payments à Outgoing Payment Global Settings à Define Accounts for Cash Discounts taken



Define Accounts for Cash Discounts granted (OBXT)SPRO à Financial Accounting à Accounts Payable and Accounts Receivable à Business Transactions à Incoming Payments à Incoming Payment Global Settings à Define Accounts for Cash Discounts granted

Payment DifferencesDefine Reason Codes for Payment Differences (SPRO à Financial Accounting à Accounts Payable and Accounts Receivable à Business Transactions à Incoming Payments à Incoming Payment Global Settings àover payment/under payments à Define Reason CodesGive the Company Code: IBSDefine the Reason Codes



Automatic Payment Program (FBZP)Every company needs some way to pay their vendors. The automatic payment program is a tool that will help users manage payables. Accounts payable invoices have to be paid on time to receive possible discounts.

How the Payment Program Works

Purpose

With the payment program you can process international payment transactions involving your customers and vendors.

Prerequisites

The Payment Methods, House Banks, and Forms you use must be defined or adapted before the payment run is executed.

If the above-mentioned steps are to be carried out automatically, the payment program requires the following information:

• Rules according to which it can determine the open items to be paid and, if expedient, group them together for payment. For example, you can specify grace periods for incoming items, which are taken into consideration when calculating the due date.

• Specifications for selecting the payee. You can enter an alternative payee in your customer/vendor's master record or in the document itself.



• Rules used by the payment program to select the payment methods. You can specify payment methods via your customer or vendor's master record or via the open items, or you can have the payment program select them using specified rules.

• Rules used by the payment program to select the house bank from which the payment is made. House banks are banks where your company (company code) maintains accounts. You can specify a house bank in your customer/vendor's master record or in the line item, or you can have the payment program select it using specified rules.

• Specifications for automatic postings. The payment program requires information such as document types, posting keys and accounts, in order to carry out the automatic postings.

Process Flow

The program processes open items in three steps (see the figure Processing Open Items):

1. It determines the open items to be paid and creates a proposal list. You can process the proposal list on-line. Among other things, you can change payment methods or banks, block items, or cancel payment blocks.

2. The payment program carries out payment using the proposal list. The payment run includes only the open items contained in the proposal list. The payment program posts documents and provides the data for the form printout and for creating the data carriers, the payment advice notes and the payment summaries.

3. It uses the print program to print the forms and create the data carriers.

Payment methods

The payment method specifies the procedure, such as check, transfer or bill of exchange, by which payments are made.

The following payment methods are usual in Accounts Payable and Accounts Receivable:

Payment Methods in the System

Accounts payable Accounts receivable

Check Bank collection

Transfer Bank Direct Debit

Postal giro transfer Refund by check

Bills of Exchange Refund by bank transfer

Check/bill of exchange Bank billsBill of exchange payment request

You define the payment methods in two steps:

...



1. You first make all the specifications that are required for each payment method in each country. This is necessary for all the payment methods used by your organization in each country. If you have companies (company codes) in Germany, France and the USA for example, you define the payment method "check" for each country.

2. You then define the payment methods you use for each company code. When in this Configuration function, you also specify the conditions of their use.

For more information, see Notes for the Payment Method

House Banks

The banks with which your company (company code) maintains a bank account are referred to as house banks.

You define these banks in the system under a house bank key (bank ID). You store the accounts that you maintain at these banks under an account ID. For each bank account, you create a G/L account in the SAP system.

Bank master data is stored centrally in the SAP system. This includes address data and other control data, such as the SWIFT code. You require bank master data for your house banks and for your customer or vendor's banks. By specifying the country and a country-specific key, such as the bank number or the SWIFT code, you establish the connection between your house banks and the bank master data (see the figure below). The bank details are required for printing the payment forms.

Forms

Various programs are available for printing payment forms. In some cases, the print programs are country-specific. You specify the program to use for a payment method when you make the country specifications for the payment method. See Country-Specific Definitions for the Payment Method: Graphic (4) this prevents the payment program from selecting the wrong print program when printing is carried out.

You also specify a name for the print job in print administration, under which the data for the payment transfer is stored temporarily. See Country-Specific Definitions for the Payment Method: Graphic (4)

To ensure that the programs print the forms correctly, the system specifies which data is printed in which position. The form layout is defined with SAP Script. You specify the name of the defined payment form when you make the company code specifications for the payment method. See the figure below, (1). You also determine how many invoice items can be printed out in the part of the form which serves as the note to the payee. See the figure below, (2). If more items are to be paid than can be listed on a form, you specify whether

The settings are divided into the following categories:All company codes

• Inter-company payment relationships• The company code(s) that process payments• Cash discounts• Tolerance days for payments• The customer and vendor transactions to be processed



Paying company codes• Minimum amounts for incoming and outgoing payments• Forms for payment advice and EDI (Electronic Data Interchange)• Bill of Exchange parameters

Payment methods / country• Methods of payments such as Cheque, Bank Transfer etc.• Define the basic requirements and specifications for each payment method• Create a Cheque, bank transfer, bill of exchange, etc.• Master record requirements, i.e. address required• Document types for postings• Print programs• Permitted currencies

Payment methods / company codeDefine for each payment method and company code

• Minimum and maximum payment amounts• Whether payments abroad and foreign currencies are allowed• Grouping options• Bank optimization• Forms for payment media

Bank DeterminationThese components need to be taken into consideration when selecting the paying house bank …

• Ranking order (per pmt method, define, 1. which house bank should be considered for payment first, second, third, etc., 2. Currency, 3. Bill of exchange)

• Accounts & Amounts (per house bank and payment method combination, define, 1. The offset account to the sub-ledger posting, 2. Clearing accounts for bills of exchange 3. The available amount of funds in each bank)

• Charges (Assess additional bank charges for incoming and outgoing payments, Used with bills of exchange, Additional automatic posting configuration)

• Value date (per house bank and payment method combination, value date is … 1. Used with cash management and forecast 2. The number of “days until value date” plus the posting date)

Steps

• Set up all company Codes for payment Transactions • Set paying Company Code for Payment Transaction • Set up Payments for Country for payment Transactions• Set up Payment methods for Company Code • Set up Banks Determination for Payment Transactions



Set up all company Codes for payment Transactions

Give the Sending the Company Code Give the Paying Company Code Select the max Cash Discount Check BoxSave



Set paying Company Code for APP



Minimum amount for incoming payment : Rs.100Minimum amount for outgoing payment : Rs.100Form for the Payment Advice` : F110_D_AVISText ID : STLetter header : F110_HEADERFooter Text : F100_FOOTERSENDER : F100_SENDER

Separate Payment for each Payment Reference

This indicator means that only invoices and credit memos which have the same payment reference can be settled with one payment

When dividing up payments by reference number, you should note that an outgoing payment cannot be generated for payment references which only refer to credit memos.

When payments are made by payment reference, offsetting between customers and vendors does not usually occur, unless the payment reference in a customer line item becomes the same as the payment reference in a vendor line item as a result of a change in the document.

Set Payment Methods in Country



Payment Methods for Company code level

Indicator: One Payment per Item?

Causes open items which contain this payment method to be paid individually.

Use

All items, for which the payment method so indicated is entered explicitly, are paid individually. If the payment method is not specified explicitly but is instead selected by the payment program, several items can be paid together.

Indicator: Payment per Due Day

Indicator which specifies that only items that are due on the same day will be paid with a single payment.

Use

The due date of the paid items (the same for all of them) is stored in the header record of the payment. This date can be referred to in the payment medium print and in the data medium exchange, in order, for example, to pass on an individual run date to the bank for every payment.

Special features

If the due date of an item is earlier than the posting date of the payment run, it is replaced by the payment run posting date. This ensures that all items which are overdue on the posting date are paid with a single payment.

The baseline date for determining the value date is the due date of the payment and not, as was previously the case, the posting date of the payment.

Even though the total items to be paid may give a credit balance, which would require an outgoing payment, it is possible that there is a debit balance for certain due dates. In this case, the items due on that date are paid together with the items from the next available due date.



Creation of Check Lots (FCHI)Accounting à Financial Accounting à Accounts Payable à Periodic Processing à PaymentsFrom Menu àEnvironment à Check Information à Number RangesGive the Paying Co.Code : IBS House Bank : SBIGive the Bank Account ID : SBICCSelect Change button Select the Create button Give Check lot number: 101From Number: 100000 to 200000Note: Don’t Check on ‘Non-Sequential’ (Should be sequential for the payment program)SavePayment Run (F110)Accounting à Financial Accounting à Accounts Payable à Periodic Processing à Payments (4 steps to the payment process:Parameters: In this step, the following questions are asked and answered

• Who is going to be paid?• What payment methods will be used?• When will they be paid?• Which company codes will be considered?• How are they going to be paid?

Proposal: Once the parameters have been specified, the proposal run is scheduled and it produces a list of business partners and open invoices that are due for payment. Invoices can be blocked or unblocked for payment.Program: Once the payment list has been verified, the payment run is scheduled. A payment document is created and the general ledger and sub-ledger accounts are updated.Print: The accounting functions are completed and a separate print program is scheduled to generate the payment media.)

Run Date: Current DateIdentification: ABC (any)Click ‘Parameters’ TabCompany Code: XYZPayment Method: DNext Payment Date: Current Date+1Vendor Account: Give Range



Click ‘Additional Log’ TabVendor Account: Give RangeCheck on ‘Due Date Check’Check on ‘Payment method selection in all cases’Save & Back

Click ‘Schedule Proposal’Select ‘Start Immediately’Target: BBY‘Enter’ till Payment Proposal has been created

Click ‘Edit Proposal’Select Line ItemsClick ‘Reallocate’Payment Method: DHouse Bank: UTIA/c. ID: UTI1Save & Back

Click ‘Printout/Data Medium’Program: RFFOUS_CVariant: DEnvironment > Maintain VariantProgram Run Date: Current Date+1 (Next Payment Date mentioned in the Program)Identification: ABCPaying Company Code: XYZPayment Method: DBusiness Area: XYZHHouse Bank: UTIA/c. ID: UTI1Currency Key: INRPrint Control:-Select ‘Print Checks’ Select ‘Print Immediately’Select ‘Print Payment Summary’ Select ‘Print Immediately’No. of Sample Printouts: 0No. of items in Payment Summary: 9999Save & Back Arrow twice

Click ‘Payment Run’ TabSelect ‘Start Immediately’‘Enter’ till Payment Run is carried outClick ‘Schedule Print’ TabSelect ‘Start Immediately’Job Name:‘Enter’ till Payment Run is carried outSystem à Services à Output Controller (SP01)ExecuteSelect the item in the reportClick ‘Display Contents’ IconReport can be viewed.



Accounts Receivable

The Accounts Receivable application component records and administers accounting data of all customers. It is also an integral part of sales management.

All postings in Accounts Receivable are also recorded directly in the General Ledger. Different G/L accounts are updated depending on the transaction involved (for example, receivables, down payments, and bills of exchange). The system contains a range of tools that you can use to monitor open items, such as account analyses, alarm reports, due date lists, and a flexible dunning program. The correspondence linked to these tools can be individually formulated to suit your requirements. This is also the case for payment notices, balance confirmations, account statements, and interest calculations. Incoming payments can be assigned to due receivables using user-friendly screen functions or by electronic means such as EDI and data telecommunication.

The payment program can automatically carry out direct debiting and down payments.

There are a range of tools available for documenting the transactions that occur in Accounts Receivable, including balance lists, journals, balance audit trails, and other standard reports. When drawing up financial statements, the items in foreign currency are revalued, customers who are also vendors are listed, and the balances on the accounts are sorted by remaining life.

Accounts receivable is not only one of the branches of accounting that forms the basis of adequate and orderly accounting. It also provides the data required for effective credit management, (as a result of its close integration with the Sales and Distribution component), as well as important information for the optimization of liquidity planning, (through its link to Cash Management).

To process receivables-related dispute cases, for example, payment reductions, you can use the component SAP Dispute Management.

Posting KeysCustomer Debit: 01 Customer Credit: 15S/Debtors bill of exchange Debit: 09 S/Debtors bill of exchange Credit: 19

Document Types

DR – Customer Invoice, DZ – Customer Payment, DA – Customer Document (Transfers/Reversals)

AR (Customer Accounts) is a Subsidiary Ledger of Sundry Debtors & Sundry Debtors is a Reconciliation Account under Current Assets.



Basic Settings for Accounts Receivables

a) Creation of Customer Account Groups like FI Customers and SD Customers with Reconciliation Account Field mandatory.

b) Creation of Number Range Groups and Numbers for Customers.c) Assignment of Number Range Group to Customer Account Group.d) Creation of GL Master

a. Sundry Debtors b. Sales Accounts

e) Creation of Customer Master.f) Document Types and Number Ranges for KR, KZ and KA.g) Customer Invoice Posting h) Display the Customer line items

Creation of Customer Account Groups (OBD2)

SPRO à Financial Accounting à Accounts Receivable and Accounts Payable à Customer Accounts àMaster Records à Preparations for creating Customer Master Records à Define Account Groups with Screen Layouts (Customers)Select the New Entries (Create FI Customer Group & SD Customer Group and saveCompany Code Data à Account Management à Reconciliation Account Required Entry and cash management Group is Suppress)

Create Number Ranges for Customer Accounts (XDN1)SPRO à Financial Accounting à Accounts Receivable and Accounts Payable à Customer Accounts àMaster Records à Preparations for creating Customer Master Records à Create Number Ranges for Customer AccountsThe Customer Account Group controls àThe number ranges of the accounts, the status of the fields in the master record and whether the account is a one time customer.Give the Company Code: IBSSelect the Change Intervals button Select the insert intervals button Give the Number ranges and Save

Assign Number Ranges to Customer Account Groups (OBAR)SPRO à Financial Accounting à Accounts Receivable and Accounts Payable à Customer Accounts àMaster Records à Preparations for creating Customer Master Records à Assign Number Ranges to Customer Account GroupsSelect the position button Give the Customers Account Group: XYZAssign the Number range: 02SaveCreation of Customer Master (XD01)Accounting à Financial Accounting à Accounts Receivable àMaster Records àMaintain Centrally àCreateGive the Customer Account Group: IBS Customers GroupGive the Company Code: IBS



Description: Customer Name (XYZ Limited) and select Next Screen button àSelect Company Code Data Button - Give Reconciliation Account Number,Give the Sort Key Save

Line item display and open item management are always preset to “on” for every customer account.

A complete Customer Account consists of 3 segments – 1. General Data at the client level 2. Company code segment and 3. Sales Area segment

General data consists Address, Control data, Payment transactions etc. The account number is assigned to the Customer at the client level. This ensures that the account number for a customer is the same for all company codes and sales areas.Company data consists Accounting information, Payment transactions, Correspondence, Insurance, Withholding tax etc.

Note: If SD creates their segment of the master record and then FI creates their segments of the master record, there is the risk of creating incomplete or duplicate master records. To find and correct these incomplete accounts, we can run report RFDKAG00 and make the necessary corrections.Creation of duplicate accounts can be prevented by:

• Using the match code before creating a new account• Switching on automatic duplication check

Important Fields• Search Item: Should be filled with a short version of the customer name according to company

rules/desires. An additional search field also can be filled up.• Group Key: Customers who belong to one corporate group can be bundled together by a user-

defined group key. This group key can be used for running reports, transaction processing or for match codes.

• Accounting clerk: The accounting clerk’s name has to be stored under an ID and this ID can be entered in the customer master record of the account he or she is responsible for. The accounting clerk’s name is then printed on correspondence and this ID is used to sort dunning and payment proposal lists.

Document Types & Number Ranges (OBA7)SPRO à Financial Accounting à FAGS à Document à Document Header à OverviewSelect the document type: DR – Customer InvoiceSelect the document type: DA – Customer DocumentSelect the document type: DZ – Customer Payment Select the Document type and Select the Details buttonSelect the Number range information à Give the Company Code à Select the change intervals button àselect the insert intervals button (Give Number Ranges for Document Types DR, DZ and DA)SaveSale Invoice Posting (F-22)Accounting à Financial Accounting à Accounts Receivable à Document Entry à Other à Invoice GeneralGive the Doc. Date, Company Code: IBS and Currency INRPosting Key: 01Give the Customer Accounts Number: 1000001Enter



Give the Amount: 100000Text: Customer Invoice Posting Posting key 50Accounts Number: 300000 (Sales Account)Amount * Text +Document à simulate and Save

Display Customer Account (FBL5N) with Open Item, Cleared Item and Special GL Item detailsAccounting à Financial Accounting à Accounts Receivable à Account à Display/Change Line Items

Give the Customer Account Number: 100000Give the company Code : IBSFiscal year : 2007

Execute

Display Customer Account (FD10N)

Incoming Payment Posting (F-28)Accounting à Financial Accounting à Accounts Receivable à Document Entry à Incoming Payment

Give the Document Date: 04/06/2007Company Code: IBSGive the GL Account Number: 200300Amount: 100000Text is incoming payment Give the Customer account and select the process open item button Document à Simulate and Save

Down Payments from Customers

• Create Special GL Account ‘Advances from Customers (Reconciliation Account)’ under Current Liabilities

• Create Link between S/Debtors’ and ‘Advances from Customers’ (Special GL Indicator: A)• Down Payment Receipt Posting• Sale Invoice Posting• Transfer of Down Payment from Special GL to Normal item by clearing Special GL Account• Clearing of Normal Item

Link between S/Debtors and Advances from Customers (OBXR)SPRO à Financial Accounting à Accounts Receivable and Accounts Payable à Business Transactions à Down Payments Received à Define Reconciliation Accounts for Customer Down Payments



Assign the Reconciliation Account to Special GL Account

SaveCustomer down Payment Posting (F-29)

Accounting à Financial Accounting à Accounts Receivable à Document Entry à Down Payment àDown Payment

• Give the Document Date: 30/05/2007• Give the Company Code: IBS, Currency INR• Give Bank Account: 200100 and àGive Special GL Indicator “A”• Amount: 100000 and à Give the Customer Account number 300001• Text: Advance payment from Customer• Select Display Document over View button à Amount * and Text + document à simulate and

Save (Special GL Indicator ‘A’)



Sale Invoice Posting (F-22)Accounting à Financial Accounting à Accounts Receivable à Document Entry à Other à Invoice General

Give the Doc. Date, Company Code: IBS and Currency INRPosting Key: 01Give the Customer Accounts Number: 1000001EnterGive the Amount: 100000Text: Customer Invoice Posting Posting key 50Accounts Number: 300000 (Sales Account)Amount * Text +Document à simulate and Save

Transfer of Advance from Special GL to Normal by clearing Special GL (F-39) Down Payment ClearingAccounting à Financial Accounting à Accounts Receivable à Document Entry à Down Payment àClearingTransfer amount and save

Clearing of Normal Item (F-32)Accounting à Financial Accounting à Accounts Receivable à Account à ClearGive the Customer Account Number: 200000Select process open item button From àMenuà Documentà Simulate and save



DunningSystem defined reminder lettersDunning Area: South, North, East, WestDunning Levels: 4 (Maximum levels 9)Dunning Frequency: 10/20/30 daysGrace Period: 3/4/5 days

The Dunning Program settings are divided into the following categories:• Dunning Procedure

o Define the key for the dunning procedure to be usedo Give a description for the dunning procedureo Define dunning interval in dayso Specify minimum days in arrears after which a dunning notice will be sento Grace period per line itemo Interest calculation indicator for calculation of dunning interest

• Dunning levels (Each item to be dunned gets a dunning level according to its days in arrears)o Define minimum number of days, referring to the due date of net payment, to reach a

certain dunning levelo Define whether interest is to be calculatedo Define print parameters

• Chargeso Define dunning charges, depending on the dunning levelo Dunning charges can be either a fixed amount or a percentage of the dunned amounto A minimum amount for the dunning charges can be set

• Minimum amountso Define minimum amount or percentage of the overdue items to reach a dunning levelo Minimum amount to be reached in order to calculate interest per dunning level

• Dunning textso Define the name of the form that will be used at each dunning level

• Environmento Company code datao Sort fieldso Sender detailso Dunning areaso Dunning keys (A dunning key determines that the line item can only be dunned with

restrictions or is to be displayed separately on the dunning notice. By assigning dunning keys to certain items we can prevent these items from exceeding a certain dunning level.)

o Dunning block reasons ( A dunning block prevents accounts and items to be dunned)o Interesto Dunning grouping

Define Dunning Areas (OB61)SPRO àFinancial Accounting à Accounts Receivable and Accounts Payable à Business Transactions àDunning à Basic Settings for Dunning à Define Dunning AreasGive the Company Code: IBSGive the Dunning Area: IBDescription: Dunning Area for IBSSave



Define Dunning Procedure (FBMP)SPRO à Financial Accounting à Accounts Receivable and Accounts Payable à Business Transactions à Dunning à Dunning Procedure à Define Dunning ProceduresSelect ‘New Procedure’Name the dunning procedure name : IBSText: Dunning Procedure for IBSDunning Interval: 10 daysNumber of Dunning Levels: 4 (max)Line Item Grace Period: 3 daysSelect ‘Standard Transaction Dunning’Reference Dunning Procedure: IBSReference Interest Indicator: Item Interest calculation key if any

Select ‘Dunning Text’ Button (ignore the warning message & enter)Co. Code: XYZSelect ‘Customer’ & Enter

Select ‘New Company Code’ ButtonGive: XYZ & EnterSelect ‘Separate Notice per Dunning Level’Back arrow twice & say ‘Yes’ to the message ‘Data to be saved?’

Select ‘Dunning Text’ Button once againCo. Code: XYZSelect ‘Customer’ & Enter{Open one more session with FBMP & Double Click 0001 System defined Dunning ProcedureSelect ‘Dunning Text’ Button and give Co. Code: 0001Select ‘Customer’ & Enter}Copy the Forms from here and Paste in XYZ’s FBMPSelect Back ArrowSelect ‘Dunning Levels’ Button & specify interest settings if anySelect ‘Charges’ Button to specify Dunning Charges if anySave, Ignore the warning message & Enter

Assignment of Dunning Procedure in the Customer Master (XD02)Accounting à Financial Accounting à Accounts Receivable àMaster Records àMaintain Centrally àChange(In Company Code Data à Correspondence Tab à Assign Dunning Procedure)SaveDunning Run (F150)Accounting à Financial Accounting à Accounts Receivable à Periodic Processing à Dunning

Steps in Dunning Run• Maintain Parameters (specify the accounts and documents that are to be considered in the

dunning run)• Proposal Run• Editing Proposal• Printing Dunning Notices

(Run on: Current Date



Identification: XYZ1 (any)Select ‘Parameters’ TabDunning Date: Current DateDocuments Posted up to: Current DateCompany Code: XYZCustomer A/c. No.: Give the range & Save & Select Back Arrow

Select ‘Schedule’ ButtonStart Date: Current DateSelect ‘Start Immediately’Output Device: LP01 & Select Schedule ButtonTill you get complete message keep on entering

Select ‘Dunning Printout’ ButtonSelect ‘Print’ ButtonTill you get complete message keep on entering

Select ‘Sample Printout’ ButtonCustomer Number: Give Range & Select Print ButtonTill you get complete message keep on entering

Select ‘Individual Dunning Notice’ ButtonOutput Device: LP01 & Select Continue ButtonCo. Code: XYZ & Give Customer RangeSelect Printout Button)

Note: Dunning Level completed will be updated in Customer Master Record.

Sales TaxInput Tax or Purchase Tax

Base 1002% Tax 2

----Inventory RM 102

----Output Tax or Sales Tax

Base Price 100 Sales Account4% ST 4 ST Payable Account

----104----

Define Calculation Procedure (OBQ3)SPRO à Financial Accounting à FAGS à Tax on Sales/Purchases à Basic Settings à Check Calculation ProcedureDouble click ‘Define Procedures’(F5, Procedure: TaxXYZ {any}, Desc: Sales Tax India & SaveSelect the Record CreatedDouble click ‘Control Data’ & Select ‘New Entries’Step: 1



Condition Type: BASB Base AmountStep: 2Condition Type: MWVS Input TaxFrom: 1To: 1Account Key: VST Input TaxStep: 3Condition Type: MWAS Output TaxFrom: 1To: 1Account Key: MWS Output TaxSave)

Assign County to Calculation ProcedureSPRO à Financial Accounting à FAGS à Tax on Sales/Purchases à Basic Settings à Assign County to Calculation Procedure(For Country ‘IN’ attach the procedure ‘TaxXYZ’)

Define Tax Codes for Sales & Purchases (FTXP)SPRO à Financial Accounting à FAGS à Tax on Sales/Purchases à Calculation à Define Tax Codes for Sales and Purchases(For Input Tax àCountry: IN & EnterTax Code: V1 {Any} Desc: 2% Input TaxTax Type: ‘V’ Input Tax & EnterInput Tax: 2% (Give Input Tax Rate)Deactivate the Output Tax Line & Save)(For Output Tax àCountry: IN & EnterTax Code: A1 (Any) Desc: 4% Output TaxTax Type: ‘A’ Output Tax & EnterOutput Tax: 4% (Give Output Tax Rate)Deactivate the Input Tax Line & Save)

Define Tax Accounts (OB40)SPRO à Financial Accounting à FAGS à Tax on Sales/Purchases à Posting à Define Tax Accounts(Double click ‘VST’ Input Tax keyChart of Accounts: XYZ & SaveGive the GL Account Number to which Input Tax should go: Inventory-RM A/c.Select Back Arrow & Double click ‘MWS’ key for Output TaxChart of Accounts: XYZCheck On ‘Tax Code wise’ & SaveTax Code: A1 Account Number: ST Payable A/c.)

Assign Sales Tax Code in Customer Master (XD02)Accounting à Financial Accounting à Accounts Receivable àMaster Records àMaintain Centrally àChange(General Data Button > Control Data Tab > Tax Code1: A1 the defined tax code)

Assign Sales Tax Code in GL Account Sales (FS00)Control Data Tab à Tax Category: * (All Tax Codes allowed)Check on ‘Posting without Tax allowed’



Posting of Sale Transaction in FI (F-22)The Entry will beCustomer A/c. Dr. 1,04,000/-

To Sales 1,00,000/-To ST Payable 4,000/-



Asset Accounting Overview

Purpose

The Asset Accounting (FI-AA) component is used for managing and supervising fixed assets with the SAP R/3 System. In SAP R/3 Financial Accounting, it serves as a subsidiary ledger to the FI General Ledger, providing detailed information on transactions involving fixed assets.

Implementation Considerations

The R/3 Asset Accounting component is intended for international use in many countries, irrespective of the nature of the industry. This means, for example, that no country-specific valuation rules are hard-coded in the system. You give this component its country-specific and company-specific character with the settings you make in Customizing. To minimize the time and energy involved in Customizing, country-specific defaults are provided in the standard system where possible.

The Implementation Guide (IMG) provides the necessary functions for this in Asset Accounting.

Integration

As a result of the integration in the R/3 System, Asset Accounting (FI-AA) transfers data directly to and from other R/3 components. For example, it is possible to post from the Materials Management (MM) component directly to FI-AA. When an asset is purchased or produced in-house, you can directly post the invoice receipt or goods receipt, or the withdrawal from the warehouse, to assets in the Asset Accountingcomponent. At the same time, you can pass on depreciation and interest directly to the Financial Accounting (FI) and Controlling (CO) components. From the Plant Maintenance (PM) component, you can settle maintenance activities that require capitalization to assets.



Integration of Asset Accounting

Features

The Asset Accounting component consists of the following parts:

• Traditional asset accounting

• Processing leased assets

• Preparation for consolidation

• Information System

Traditional asset accounting encompasses the entire lifetime of the asset from purchase order or the initial acquisition (possibly managed as an asset under construction) through its retirement. The system calculates, to a large extent automatically, the values for depreciation, interest, insurance and other purposes between these two points in time, and places this information at your disposal in varied form using the Information System. There is a report for depreciation forecasting and simulation of the development of asset values.

The system also offers special functions for leased assets, and assets under construction. The system enables you to manage values in parallel currencies using different types of valuation. These features simplify the process of preparing for the consolidation of multi-national group concerns. The Plant Maintenance (PM) component offers functions for the technical management of assets in the form of functional locations and as equipment. The Treasury (TR) component offers special functions for managing financial assets

Flow of Asset Accounting

Nature of Transactions

Account determination

Asset Class Asset masters Sub Asset masters

Purchases

Sales

Profit on Sales of Assets

Loss on Asset Sales

Loss due to Scrapping

Depreciation

Acc. depreciation

Land

Buildings

Plant & Machinery

Furniture & Fixtures

Vehicles

Capital Work in progress

Free hold Land Less hold Land

Factory buildingsNon- Factory buildings

Dept –ADept –BDept –C

IndigenousImported

Expansion -1Expansion -2

Machinery Motor



Rules in Asset Accounting

1. Sub Asset Master has to be create with reference to Main Asset Master2. Main Asset Master is to be create with reference to Asset Class 3. In Asset Class we specify Account Determination4. For Account determination we assign GL A/c based on the Nature of Transactions

Basic Settings

Copy Reference chart of Depreciation Areas

Charts of depreciation. The chart of depreciation is a list of depreciation areas arranged according to business and legal requirements. The chart of depreciation enables you to manage all rules for the valuation of assets in a particular country or economic region.

Path: Spro àFinancial Accounting àAsset accounting àorganization Structures àCopy Ref chart of Depreciation / Depreciation Areas

Double Click Copy Ref Chart of Depreciation

From Menu à Organization object à Copy Business object



Select Back arrow

Select Position buttonGive the Chart of Depreciation TSR

Save

Select back Arrow

Ø Double Click copy Delete Depreciation Areas

Give the Chart of Depreciation TSR

Delete the Depreciation other than 01 (Book Depreciation)



Go on press Enter & Save till below message



Creation of Zero Tax Code for Purchases / Sales TC: FTXP

Path: Spro à Financial Accounting à Financial Accounting Global Settings à Tax on Sales / Purchases à calculations à Define Tax Codes on Sales & Purchases

Select back arrow



EnterMake it out put tax as 0

Save



Assign Tax Code Company Code for Non – Taxable Transactions TC: OBCL

In this activity you define an incoming and outgoing tax code for each company code, to be used for posting non-taxable transactions to tax-relevant accounts. Transactions posted like this are, for example; goods issue delivery, goods movement, goods receipt purchase order, goods receipt production order, order accounting.

Path: Spro à Financial Accounting à Financial Accounting Global Settings à Tax on Sales and purchases à Postings à Assign Tax Code for Non – Taxable Transactions

Assign Chart of Depreciation to Company Code TC: OAOB

Path: - Sproà Financial Accounting à Asset Accounting à Org. Structure à Assign Chart of Depreciation to Co. Code



Specify the Account Determination

The key of an account determination must be stored in the asset class asset class. In this way, the account determination links an asset master record to the general ledger accounts to be posted for an accounting transaction using the asset class.

You specify the general ledger accounts to be posted for the individual accounting transactions in later implementation activities. You can specify various accounts for each depreciation area to be simultaneously posted to.

Path: Spro à Financial Accounting à Asset Accounting àOrg. Structure -à Asset Classes à Specify Account Determinations

Select New Entries

Save

Create Screen Layout Rules

Path: Spro à Financial Accounting à Asset Accounting àOrg. Structure -à Asset Classes à Create Screen Layout Rules

Screen layout for maintaining asset master data.

Using the screen layout rule, you can define:

• which fields are required, optional and suppressed

• the maintenance level in the asset hierarchy

• Which fields are copied, when creating an asset using another asset master record as a reference?

You can define screen layout rules for general master data and for depreciation parameters within depreciation areas.



Define Number Range Information

Path: Spro à Financial Accounting à Org. Structure -à Asset Classes à Create Number Range Intervals



Define Asset Class

The asset class is the most important criteria for structuring fixed assets from an accounting point of view. Every asset has to be assigned to exactly one asset class. The asset class is used to assign the assets (and their business transactions) to the correct general ledger accounts. Several asset classes can use the same account assignment. You can see that it is possible to make finer distinctions at the level of the asset class than at the level of the general ledger accounts.



For All the Asset Class you have create asset Class

Creation of Asset Class for Asset under Constructions



Specifies that the assets under construction in this asset class are managed with the option for final line item settlement to receiving assets or cost centers.



Determine Depreciation Areas in the Asset Class TC: OAYZ

SPRO à Financial Accounting à Asset Accounting à Valuation à Determine Depreciation Areas in the Asset Class

Determine Depreciation Areas in the Asset Class

Generally, the assets in an asset class use the same depreciation terms (depreciation key, useful life). Therefore, you do not have to maintain the depreciation terms in the asset master record. Instead, they can be default values from the asset class.

In this step, you determine the depreciation terms that are to be used in your asset classes. Depending on the definition in the screen layout control used, these depreciation terms are offered either as optional or mandatory defaults when you create an asset.

For each asset class, you can maintain as many charts of depreciation with their depreciation areas as you need. This allows you to use the asset class in all countries belonging to the client.



Same way for the Remaining Asset Class



Creation of GL Accounts

1) Land Accounts 2) Buildings Accounts A/c Group : Fixed Assets 3) Plant & Machinery Field Statues variant : G0674) Furniture & Fixtures Sort key : 0185) Vehicles 6) Capital – Work – in – Progress

a) Accumulated Depreciation on Buildings b) Accumulated Depreciation on Plant & Machinery c) Accumulated Depreciation on Furniture & Fixtures d) Accumulated Depreciation on Vehicles

(Account group: Acc. Depreciation, field Statues group: (G067)

Asset Sales : Field Status Group: G052 (Group: Other Income)

Profit on Asset Sales : Field Status Group: G001 (Group: Other Income)

Loss on Asset Sales : Field Status Group: G001 (Group: Admn)

Loss due to Scrapping : Field Status Group: G001 (Group: Admn)

Depreciation : Field Status Group: G001 (Group: Depreciation)



Creation of GL Master

TC: FS00



Assignment of GL Accounts

Spro à Financial Accounting à Asset Accounting à Integration with the General Ledger à Assign GL Accounts

Select the Chart of Depreciation: TSR

Double Click Account Determination

In this step, you specify the balance sheet accounts, special reserve accounts, and the depreciation accounts for Asset Accounting.



Double Click Balance Sheet Accounts



Double Click Depreciation

Save

• We have to assign the GL Accounts to All Asset Class

Define Document Types for posting of Depreciation

Spro à Financial Accounting à Asset Accounting à Integration With GL à Post Depreciation to General Ledger à Specify Document types for Posting of Depreciation

Double Click Define Document types



Ø Select details Button



Select Number Range Information



Select Change Intervals

Save

Specify the Intervals & Posting Rules

Spro à Financial Accounting à Asset Accounting à Integration With GL à Post Depreciation to General Ledger à Specify Intervals & Posting Rules



Select the Monthly Postings button

Smoothing (deprec. for past) when posting depreciation

If you set this indicator, the depreciation posting program calculates the periodic depreciation to be posted by distributing the remaining depreciation to be posted equally over the remaining periods of the fiscal year.

Otherwise the system calculates in each period (based on the total annual depreciation) the amount of depreciation that must be posted from the start of the fiscal year to the current period. The depreciation already posted is then subtracted from this amount. If too little or too much depreciation has been posted in previous periods, the system either makes up or reverses the difference in full during the next depreciation posting run using the catch-up method (depreciation for past periods in a lump sum).

Specify rounding of Net book values (or) Depreciation TC: OAY0

Spro à Financial Accounting à Asset Accounting à Valuation à Amount Specification (Company Code /Depreciation Area)à Specify Account Assignment types for Account Assignment Object àSpecify rounding of Net book value and Depreciation



Ø Select Automatically Calculated Depreciation Ø Select Arithmetic Rounding

Define Screen Layout for Asset Master Data

Path: Spro à Financial Accounting à Asset Accounting à Master Data à Screen layout à Define Screen Layout for Asset Master Data



Select Capitalization date is required



Ø Main Asset number Ø Sub Asset Number Ø Select Copy button

And

Make it Business Area Required Filed and Select Main Asset number, Sub Asset number Check box, Copy Check boxes

Save

The Same Procedures follows for all the other Fixed Assets

Define Screen Layout for Asset Depreciation Areas TC: A021

Path is same

Save



Depreciation

1. Define Base Methods2. Define Declining Balance Methods3. Define Multilevel Methods4. Maintain Period Control Methods5. Maintain Depreciation Key

All the Depreciation methods will be assigned to Depreciation key

Define Base Methods

Spro à Financial Accounting à Asset Accounting à Depreciation à Valuation method àDepreciation key à Calculation methods à Define base method

Select 0014 (Ordinary Depreciation)

Select Details Button

Save

Define Declining Balance Method (TC: AFAMD)

Spro à Financial Accounting à Asset Accounting à Depreciation à Valuation method àDepreciation key à Calculation methods à Define Declining Balance Method



Define multilevel method

Spro à Financial Accounting à Asset Accounting à Depreciation à Valuation method àDepreciation key à Calculation methods à Define Multilevel method

Double Click on Levels button

Select New Entries



Save

Select back arrow

Select next Entry button

Select levels button

Double Click Levels button à Select New Entries button



Save

Define Periodic Control Method TC: AFAMP

Path is same

Select New Entries

Save



Maintain Depreciation keys

Define multilevel method

Spro à Financial Accounting à Asset Accounting à Depreciation à Valuation method àDepreciation key àMaintain Depreciation key

Give Depreciation key TSRS

Select the check boxes (period control according to fiscal year)

Depreciation to the Day

Double click assignment of Calculation Methods



Select back arrow 3 times à Select the Depreciation area à Select Active button

Save

Save

Maintain depreciation keys by assigning calculation methods to them. You can divide the duration of depreciation into several phases. When you enter a changeover method for one of these phases, the system changes over to the next phase as soon as the event specified in the changeover method has occurred. The system then uses the depreciation calculation that is specified in the calculation method for this phase.



Creation of Asset master

Path: Accounting à Financial Accounting à Fixed Assets à Create à Assets



Save

Creation of Sub Asset Master AS11

Path: - Accounting à Financial Accounting à Fixed Assets à Assets à Create à Sub number à Asset



Purchase of Assets (Posting of transaction) TC: - F-90



Posting of Asset



Sub Asset wise & year wise report – AW01N (Asset Explorer)

Accounting à Financial Accounting à Fixed Assets à Assets à Asset Explorer



Depreciation Posting Path: Accounting à Financial Accounting à Fixed Assets à Period Processing à Depreciation Run àExecute



• Asset has to be created in advance. Don’t forget to flag “post capitalization Flag” in initial screen• For information on a specific field, but the cursor on this field and click F1



This transaction is used to capitalize an asset for a fiscal year in which the asset was not originally capitalized. This posting, however, is to be made for a fiscal year that is already closed. This process would generally take place as part of a government tax audit

Post Capitalization TC: ABNAN

Path: Accounting à Financial Accounting à Fixed Assetsà Posting à ABNAN - Post-Capitalization

Before you start this transaction, a new asset has to be created. Follow BPP AS01 Create Asset for more detailed information. The only deviation is that in Create Asset Initial screen, you have select Post-capitalization by using the selection indicator: .

Example

Be sure to enter the capitalization date in the past in the master data screen. The capitalization date must be in a closed fiscal year.

Complete the rest of the Create Asset Master Data setup as explained in BPP AS01 Create Asset.

Now you are ready to perform a post capitalization of an asset:



SAP Easy Access

Double Click on “ABNAN – Post Capitalization”



Enter Asset Transaction: Post-Capitalization



1. Update the following required and optional fields:

Field Name Description R/O/C

Values

Existing asset Description of Existing asset.

R Enter value in Existing asset.Example: 200008

Amount posted Total amount to be posted to an asset

R Enter value in Amount posted.Example: 500

Document Date Date the transaction occurred

R Enter value in Document Date.Example: 10/13/03

Posting Date Date that the business transaction occurred

R Enter value in Posting Date.Example: 10/13/2003

Orig. val. dat Original valuation date in the past

R Enter value in Orig. val. dat.Example: 01/01/2002

Text Description of the capitalization activity.

R Enter value in Text.Example: BPP for post-

capitalization

2. Click <tab button> Additional details .






Values

Period Number identifying a fiscal month

O Enter value in Period. Example: 10

Document type Code identifying the method that the system uses to process the transaction

R Enter value in Document type.Example: AA (defaulted by

system )

Offsetting acct Offsetting acct. used during the capitalization posting

R Enter value in Offsetting acct.Example: 62515001

Trans. type Description of Trans. type. O Enter value in Trans. type.Example: 400 Post-

capitalizationReference Document number of the

customer/vendor.O Enter value in Reference.



Assignment Additional line item reference field.

O Enter value in Assignment.

4. Click <tab button> Note .




5. Enter any notes which describe the asset posting.

6. Click Simulate Button .




7. Review information.

This shows the system will back up the capitalization of the asset to the specified capitalization date. You notice there is also posting made to the Accumulated Depreciation account.

8. Click Save Button .



The system could display the message, “managing entity not balanced.” Verify that for every dollar going to one profit center there is a Credit going to the same profit center.


10. Click Back Button until you reach the SAP main menu.

11. The system task is complete.



Transfer Asset within Company Code TC: ABUMN

AccountingàFinancial Accounting à Fixed Assets à PostingàTransferà ABUMN à Transfer within Company Code

Double Click on “ABUMN – Transfer within Company code.



Enter Asset Transaction: Transfer within Company Code



3. Update the following Required/Optional/Choice fields:


Values

Asset Number which identifies the asset being transferred.

R Enter value in Asset.Example: 200000

Document Date Date the transaction occurred.

R Enter value in Document Date.Example: 10/07/2033

Posting Date Date that the business transaction occurred.

R Enter value in Posting Date.Example: 10/07/2003

Asset val. date Date used to determine the value of the asset..

R Enter value in Asset val. date.Example: 10/07/2003

Text Description of why the transfer is taking place.

O Enter value in Text.Example: 200000 (Ass class

2000 to 2000002 (Ass Class 2100

Existing asset Indicator which specifies that the values will be transferred to a different asset within the same company code.

C Enter value in Existing asset.Example: 200002 2

New asset Indicator which specifies that the values will be transferred to a new asset within the specified company code.

C Enter value in New asset.

Although it is possible to create a new asset using this transaction, it is better to create the new asset using the transaction AS01-Create Asset because there are more fields that can be populated using that transaction.

4. Click <tab button> Additional details .






Values

Period Fiscal period when the transfer will occur.

R Enter value in Period.Example: 10

You.can either transfer the full value of the asset or a partial value. To transfer a partial amount, complete Steps 4 – 6. Otherwise, skip to Step 7.

6. Click <tab button> Partial transfer .






Values

Percentage rate Percentage of acquisition purchase cost being transferred or retired

R Enter value in Percentage rate.Example: 50.00

8. Click <radio button> From cur.yr.acq .

9. Click Simulate Button .




10. Click Save Button .

10. Click Back button until you get to the SAP main menu.



Asset Transfer out side Company Code (Inter Company Transfer)Path: Accounting à Financial Accounting à Fixed Assets à Posting àTransfer à Inter company Asset Transfer



Select Simulate button

Check the line Items

Save



Closing of Fiscal year Open New Year



Depreciation Forecast Accounting à Financial Accounting à Fixed Assets à Information System à Reports on Asset Accounting à Depreciation forecast à Depreciation on Capital Assets à Depreciation Simulation



Financial Statement Version (FSV)

Summary, Schedules and Accounts

We define a financial statement version in 2 steps:1. Enter in the directory of financial statement versions2. Define hierarchy levels and assign accounts

Each version must have the following special items:1. Assets2. Liabilities3. Profit4. Loss5. Profit and Loss results6. Accounts not assigned

The ABAP/4 program RFBILA00 calculates the balance sheet profit/loss from the assets and liabilities totals and enters the result in the “Balance sheet results profit/loss” item. The profit and loss statement results are determined from all accounts not assigned to either assets or liabilities, and are entered in the proper item.

1. A financial statement version consists of a maximum of 10 hierarchy levelsa. Assign items to each level. The system calculates a total/subtotal for each item which is

then displayed when the program is run.b. Assign texts to each item.c. Assign the accounts whose balance and account name are to be listed to the lowest levels.

Define Financial Statement Version

SPROàFinancial Accountingà General Ledger Accounting à Business Transactions à Closing àDocumenting à Define Financial Statement Version

Select the New EntriesGive the Financial Statement Version: XYZName: Balance sheet & Profit and loss AccountCheck on “Item keys auto”Chart of Accounts: XYZSaveClick ‘Financial Statement Items’ buttonDouble click ‘No text exists: Assets’Item: Assets & EnterDouble click ‘No text exists: Liabilities’Item: Liabilities & EnterKeep the cursor on ‘XYZ’ Balance Sheet & Profit and loss AccountClick ‘Create items’ buttonIncomeExpenditure & EnterKeep the cursor on the item which is to be changedKeep the cursor on AssetsClick ‘Select +/-‘ button (F9)Keep the cursor on the item after which you want to place, i.e. ‘Liabilities’



Click ‘Reassign’ buttonSelect ‘Same level’ Radio button & EnterKeep the cursor on ‘Income’ & Place it after ‘Expenditure’ & Save

To create Schedules:Keep the cursor on ‘Liabilities’ & Press ‘Create items’ buttonGive the heads you wantRepeat the same for ‘Assets’ & Save

To assign Accounts:Keep the cursor on ‘Share Capital’Click ‘Assign Accounts’ buttonGive the range for the Accounts & Check on Dr. Cr. EnterRepeat the same for other schedules

To check all Accounts assigned or not:Click ‘Check’ Button (Ctrl+F5)Select ‘Non-assigned Accounts’& EnterReport can be viewed if there are any non-assigned accountsSave the version and open one more session to view the balance sheet for defining texts

View Balance Sheet (S_ALR_87012284)

Accounting à Financial Accounting à General Ledger à Information System à GL Reports à Balance Sheet/P&L Account/Cash Flows à General à Actual/Actual Comparisons à Balance Sheet/Profit & Loss Statement

Reports

To View Chart of Accounts (S_ALR_87012326)Accounting > Financial Accounting > General Ledger > Information System > General Ledger Reports > Master Data > Chart of Accounts > Chart of Accounts

Trial Balance (S_ALR_87012310)Accounting > Financial Accounting > General Ledger > Information System > General Ledger Reports > Account Balances > Korea > Trial Balance South Korea

Ledger for Balance Audit Trial (S_P99_41000327)Accounting > Financial Accounting > General Ledger > Periodic Processing > Closing > Document > Balance Audit Trial > All Accounts > General Ledger from the Document File

Balance Sheet (S_ALR_87012284)Accounting > Financial Accounting > General Ledger > Information System > GL Reports > Balance Sheet/P&L Account/Cash Flows > General > Actual/Actual Comparisons > Balance Sheet/Profit & Loss Statement

Drilldown Report P&LAccounting > Financial Accounting > General Ledger > Information System > GL Reports > Balance Sheet/P&L Account/Cash Flows > General > Actual/Actual Comparisons > Actual/Actual comparison for year



Vendors List (S_ALR_87012086)Accounting > Financial Accounting > Accounts Payable > Information System > Reports for Accounts Payable Accounting > Master Data > Vendor List

Vendor Age Analysis (S_ALR_87012085)Accounting > Financial Accounting > Accounts Payable > Information System > Reports for Accounts Payable Accounting > Vendor Items > Vendor Payment History with Open Item Sorted List

List of Down Payments to Vendors (S_ALR_87012105)Accounting > Financial Accounting > Accounts Payable > Information System > Reports for Accounts Payable Accounting > Vendor Items > List of Down Payments open at key date - Vendors

Vendors Ledger (S_ALR_87012103)Accounting > Financial Accounting > Accounts Payable > Information System > Reports for Accounts Payable Accounting > Vendor Items > List of Vendor Line Items

Customer Balance Confirmation Path:à Accounting àFinancial Accounting àAccounts Receivables à Periodic Processing àPrint Correspondence à Balance Confirmation à Print Letters



Vendors Balance Confirmation

Path:à Accounting àFinancial Accounting àAccounts Payable à Periodic Processing àPrint Correspondence à Balance Confirmation à Print Letters



Closing Operations - Introduction

PurposeClosing operations are periodic tasks and can be subdivided in FI as follows:

• Day-end closing• Month-end closing• Year-end closing

The closing operations component helps you prepare and carry out the activities required for day-end, month-end, and year-end closing. For this purpose, the system provides a series of standard reports that you can use to generate evaluations and analyses directly from all of the posted account balance. The system helps you carry out the following:

• (Time-based) accruals/deferrals of expenses and revenues • Creating the balance sheets and P&L statements• Document the posting data

PrerequisitesTo carry out the closing operations in G/L accounting, you first need to carry out the closing operations in the subledger accounting areas you are using. These include:

• Accounts receivable and accounts payable accounting • Inventory accounting• Asset accounting• Payroll accounting

Process Flow

Day-End ClosingDay-end closing includes all the activities required at the end of the day to check that all of the business transactions posted on that day have been correctly processed.No additional postings are required for day-end closing.You can use the following evaluations for day-end closing and for documenting the posting data:

• Correspondence with business partners• Document journal• Evaluation of the documents that have not been posted• Compact journal

Day-End Closing: Checklist (see Appendix)

Month-End ClosingMonth-end closing comprises all the activities involved in closing a posting period.You can carry out the following activities as part of month-end closing:

• Open and close posting periodsYou close one or more posting periods in the past for posting, and permit posting to be made to one or more current or future posting periods.



• Create external reportsYou can use report programs to create the following reports, for example:

• Balance sheet/P&L statement• Advance return for tax on sales and purchases• Report in accordance with the German foreign trade regulations

• Document the posting dataThis includes the following reports:

• Compact journal• Balance audit trail• Accounting reconciliation• Account balances• Open item list

• Carry out internal evaluations, such as extracts for downstream applications

• Reorganize and archive documents

Month-End Closing: Checklist (see Appendix)

Year-End ClosingYear-end closing is split into two phases:

• At the beginning of the new fiscal year, you open new posting periods and carry forward the balances from the previous year.

• You then prepare and create the financial statements, document the business transactions using the balance audit trail, and archive those documents you no longer need online.

The first posting in the fiscal year automatically opens that fiscal year. You must, however, have opened the relevant posting period first. The SAP System offers a range of reports with which you can carry forward balances into the new fiscal year. During this process, the profit and loss accounts are carried forward to one or more retained earnings accounts. The balances of the balance sheet accounts are simply carried forward into the new fiscal year. You do not have to create special opening financial statements. Any postings you make in the old fiscal year automatically adjust the relevant carry-forward balance. You do not have to close the old fiscal year and carry out the closing postings before opening the new fiscal year.As with month-end closing, you can create all the external reports required, document the posting data, and carry out the internal evaluations.

Year-End Closing: Checklist (see Appendix)

Day-End Closing: ChecklistDocument and check the posting dataThe following reports are available as examples:

Report Description



Report DescriptionRFBNUM00 Gaps in Document Number AssignmentRFBNUM10 Invoice Numbers Allocated TwiceRFVBER00 Outstanding Posting DataRFBELJ00 Compact Document JournalRFEPOJ00 Line Item Journal

Month-End Closing: Checklist

Assets

Fixed Assets- Execute the depreciation run and update the batch input session (SAP FI-AA)

Current Assets

Inventories- GR/IR clearing account – clarify any differences and correct them if necessary (SAP LO-MM)- Clear the GR/IR clearing account (SAP FI)

Prerequisite: Accounts have already been maintained by MM- Period closing program (SAP LO-MM)- Settle the work in process (SAP FI-CO)- Post the reconciliation ledger (SAP FI-CO)

Receivables and Other Asset Items- Check whether all the billing documents have been posted (SAP LO-SD)- Valuate the foreign currency for the open items (SAP FI), see also Payables- Valuate the foreign currency for the balances (SAP FI + SAP FI-TR)- Regroup the open items (SAP FI), see also Payables

Accruals and Deferrals- Post accruals/deferrals (SAP FI-TR + SAP FI)

Liabilities and Owner’s Equity

Accruals

Payables- Payroll accounting (SAP HR)- Valuate the foreign currency for the open items (SAP FI), see also Receivables



- Valuate the foreign currency for the balances (SAP FI+SAP FI-TR), regroup the open items (SAP FI), see also Receivables

Accruals and Deferrals- Post accruals/deferrals (SAP FI)

Miscellaneous

Additional Tasks (SAP FI)- Post accruals/deferrals (SAP FI)

Check whether the accrual/deferral documents have to be reversed- Carry out recurring entries and update the batch input session (SAP FI)- Reconcile cost of sales accounting/period accounting/profit center ledger (SAP FI/SAP FI-CO)- Close the posting period (SAP FI)- Run the reconciliation program (SAPF190)

This program checks the documents and transaction figures in the R/3 System. You can only execute this run if you do not intend to carry out any postings for the period, otherwise reconciliation differences will occur. You can schedule the job to run in the background.

Printing Reports and Notifications:- Balance sheets and P&L statements- Advance return for tax on sales and purchases- German foreign trade regulations (Z4, Z5A)- EC sales list (quarterly)- EXTRASTAT declarations (SAP LO-SD)- INTRASTAT declarations (SAP LO-MM)- Account balances (SAP FI)- Journals (SAP FI)

Internal Closing (SAP FI-CO)Internal order and project-related tasks:- Transfer postings, surcharges, project interest calculation, settlement

Product and production-related tasks:- Release a standard cost estimate, perform inventory costing, transfer postings, surcharges

Variance calculation, results analysis, and settlement

Cost center-related tasks:- Transfer posting, distribution, assessment, activity allocation, transfer key figures, cost center

variance, price calculation

Results-related tasks



- Evaluate actual postings, transfer external data, distribution, assessment, transfer balance sheet items to PCA

Year-End Closing: Checklist

Assets

Fixed Assets- Settle the AuC (SAP FI-AA)- Execute the depreciation run and update the batch input session (SAP FI-AA)- Run the fiscal year change in Asset Accounting (SAP FI-AA)

This process creates the balance carryforwards for Asset Accounting. We recommend that you execute this run on the first day of the new fiscal year. Note: by this time, you should have completed year-end closing for Asset Accounting for the previous year.

- Carry out inventory postings (RAPERB00)

Current Assets

Inventories- GR/IR clearing account – clarify differences and correct them if necessary (SAP LO-MM)- Clear the GR/IR clearing account (SAP FI)

Prerequisite: The accounts have already been maintained by MM- Regroup the GR/IR clearing account (SAP FI)

Prerequisite: The accounts have been maintained in the system (SAP LO-MM) and cleared (SAP FI)Note: you first have to run the foreign currency valuation for the open items

- Period closing program (SAP LO-MM)- Settle the work in process (SAP FI-CO)- Post the reconciliation ledger (SAP FI-CO)- Make an inventory of and post the inventory differences (SAP LO-MM)- Valuate the inventory (SAP LO-MM)- Post the valuation difference manually (SAP FI)- Material ledger (SAP LO-MM)

Receivables and Other Asset Items- Check whether all the billing documents have been posted (SAP LO-SD)- Clarify the open items and differences

Write off the differences (manually) (SAP FI) Adjust the individual values (SAP FI)Adjust the flat-rate values (SAP FI)

- Valuate the foreign currency for the open items (SAP FI), see also Payables- Regroup the receivables (for example, runtime intervals) (SAP FI), see also Payables- Print the balance confirmations (SAP FI)- Settle the rebate (SAP LO-SD), accruals, if necessary



- Calculate the interest for interest-bearing receivables (SAP FI)- Valuate the foreign currency for the balances (SAP FI + SAP FI-TR)- Reconcile the cash journal/print out the journal (SAP FI)

Accruals and Deferrals- Post accruals/deferrals (SAP FI + SAP FI-TR)

Liabilities and Owner’s Equity

Accruals- Leave reserve (SAP HR) – post manually in FI- Accruals for rebates, discounts, and commissions (SAP LO-SD)

Payables- Payroll accounting (SAP HR)- Valuate the foreign currency for the open items (SAP FI), see also Receivables- Valuate the foreign currency for the balances (SAP FI + SAP FI-TR)- Regroup the payables (for example, runtime intervals) (SAP FI), see also Receivables

Accruals and Deferrals- Post accruals/deferrals (SAP FI)

Miscellaneous

Additional Tasks (SAP FI)- Post accruals/deferrals (SAP FI)- Check whether the accrual/deferral documents have to be reversed- Carry out recurring entries and update the batch input session (SAP FI)- Carry forward the balance- Check the balances carried forward against the closing balances of the previous year - Start carrying forward the balance, if necessary (SAP FI)- Reconcile cost of sales accounting/period accounting/profit center ledger (SAP FI/SAP FI-CO)- Reconcile the asset history sheet and account balances- Close Asset Accounting (SAP FI-AA)- Close the posting period (SAP FI)- Run the reconciliation program (SAPF190)

This program checks the documents and transaction figures in the R/3 System. You can only execute this run if you do not intend to carry out any postings for the period, otherwise reconciliation differences will occur. You can schedule the job to run in the background.

- Balance audit trail (SAP FI)



Printing Reports and Notifications:- Asset history sheet (SAP FI-AA)- Balance sheets and P&L statements (monthly and annual reports)- Advance return for tax on sales and purchases (monthly notification and annual tax return)- German foreign trade regulations (Z4, Z5A)- EC sales list (quarterly)- EXTRASTAT declarations (SAP LO-SD)- INTRASTAT declarations (SAP LO-MM)

Internal Closing (SAP FI-CO)Internal order and project-related tasks:- Transfer postings, surcharges, project interest calculation, settlement

Product and production-related tasks:- Release standard cost estimate, perform inventory costing, transfer postings, surcharges, variance

calculation, results analysis, and settlement

Cost center-related tasks:- Transfer posting, distribution, assessment, activity allocation, transfer key figures, cost center

variance, price calculation

Results-related tasks- Evaluate actual postings, transfer external data, distribution, assessment, transfer balance sheet items

to PCA

Financial year Closing Procedure

Month-end closing activities (Preparatory activities)HR – Payroll posting 57MM – Maintain GR/IR clearing account 12-13

Material valuations 14-15Close material ledger 17Close material master 18-19

SD - Goods issues/invoices(Verify that all postings for the period have been generated)FI – Accrual/Deferral postings 44-45

Recurring Entries 46Depreciation posting 5Interest Accounting > Financial Accounting > General Ledger > Periodic Processing > Interest Calculation > Balances (F.52)AuC settlement 48Close old period & open new period 63

CO - Cost Centers: 51- Imputed costs, Distribution and assessment, indirect activity allocation, Calculate actual activity prices and update allocations



Internal Orders: 47, 50- Overheads- Settlement (For external settlement to AA or FI, re-open appropriate GL A/cs)Production orders: 49- Overheads- WIP calculation- Variance calculation- SettlementProfitability Analysis: 52- Cost center assessments- Activity based costing- AllocationsLock old posting period for Controlling transactions 53

Month-end closing activities (Financial closing)FI - Re-open periods for adjustments 63

CO/FI reconciliation postings (Cross-company code, cross-business area and cross-functional area flows within CO are posted to FI) 54-55Foreign currency open item valuation 39Accounting > Financial Accounting > Accounts receivable > Periodic Processing > Closing > Valuate > Valuation of Open Items in Foreign Currency (Foreign currency balance sheet account valuation 43Accounting > Financial Accounting > GL Accounts > Periodic Processing > Closing > Valuate > Valuation of Open Items in Foreign Currency (F.05)FI/PCA Balance sheet adjustment 67-70FI/CO-PA Profit and loss adjustment 71Final closing of posting periods 63Final Reporting:- Compact document journal 72- Financial statements 2-4- Taxes on sales/purchases 82- Balance audit trial 74-75

Year-end closing activities (Preparatory activities)

In addition to the regular month-end closing activities for the final period of the fiscal year to be closed, the activities to be performed for year-end closing process include:MM - Physical inventory procedure (Year-end or as required) 26

Inventory valuations – lowest value determination, LIFO, FIFO (After closing the postings in MM for the fiscal year) 20-25

CO - PP – Material valuation from new material cost estimates 16FI - FI - Open new fiscal year 63

AR/AP – Balance confirmations 29-30AA – Fiscal year change 8FI – Balance carryforward 64AA – Valuations & Capital investment subsidies (after AA postings completed for fiscal year)AA – Year-end closing 9-10AR/AP – Close fiscal year 63

Year-end closing activities (Financial closing)



FI - Analyze GR/IR postings 27Regroup receivables/payables 41General adjustmentsFinal fiscal year closing 63GL – Account balances – old fiscal year to new fiscal year (Reconcile carry forward balances with prior year final balances)FI/CO/AA – Final reporting (same as monthly + Account balances year-end)AA – Asset history sheet 11Accumulated balance audit trial 76-79

Year End Closing Check List

Activity Menu Path Trans

1. Execute a Balance Sheet (RFBILA00)

Information Systems → Accounting →Financial Accounting → General ledger →Information System→ Balance Sheet

or

Accounting → Financial accounting →General ledger → Information system →General LedgerReports → Balance Sheet/Profit and Loss Statement/Cash Flow → General → Actual/Actual Comparisons → Balance Sheet/P+L

F.01

2. Execute a Balance Sheet Drill Down Report

Accounting → Financial accounting →General ledger → Information system →General LedgerReports → Balance Sheet/Profit and Loss Statement/Cash Flow → General →….

Various

3. Process Depreciation Run Accounting → Financial accounting →Fixed assets → Periodic processing →Depreciation run → Execute

AFAB

4. Process Revaluation Accounting → Financial accounting →Fixed assets → Periodic processing →Revaluation for the balance sheet → Post revaluation

AR29

5. AA Fiscal Year Change Accounting → Financial accounting →Fixed assets → Periodic processing → Fiscal year change

AJRW

6. AA Fiscal Year Close – Account Reconciliation

Accounting → Financial accounting →Fixed assets → Periodic processing → Year-end closing → Account reconciliation

ABST2

7. AA Fiscal Year Close Accounting → Financial accounting →Fixed assets → Periodic processing → Year-end closing → Execute

AJAB

8. Asset Balances Accounting → Financial accounting →Fixed assets → Info system → Reports on S_ ALR_



Asset Accounting → Balance Sheet Explanations → International → Asset Balance

87011994

9. Asset balances by Asset Class Accounting → Financial accounting →Fixed assets → Info system → Reports on Asset AccountingàAsset BalancesàAsset Balancesàby Asset Class S_ALR_870119

64

10. Produce Asset History Sheet Accounting → Financial accounting →Fixed assets → Info system → Reports on Asset Accounting → Balance Sheet Explanations → International → Asset History Sheet

or

Accounting → Financial accounting →Fixed assets → Info system → Reports on Asset Accounting → Balance Sheet Explanations → Country Specifics →…

S_ ALR_ 87011990

11. Post Individual Value Adjustment Accounting → Financial accounting →Accounts receivable → Document entry →Other → Intern. trans. posting → Without clearing

F-21

12. Writing-Off Doubtful Receivables Accounting → Financial accounting →Accounts receivable → Document entry →Other → Intern. trans. psting → With clearing

F-30

13. Foreign Currency Open Item Accounting → Financial accounting →General ledger → Periodic processing →Closing>>Valuate → Valuation of Open Items in Foreign Currency

F.05

14. Posting Accruals/Deferrals Accounting → Financial accounting →General ledger → Periodic processing →Closing → Valuate → Enter Accrual/Deferral Doc.

FBS1

15. Posting Accrual/Deferral Reversal Accounting → Financial accounting →General ledger → Periodic processing →Closing → Valuate → Reverse Accrual/Deferral Document

F.81

16. Generate Recurring Entry Posting Accounting → Financial accounting →General ledger → Periodic processing →Recurring Entries → Execute

F.14

17. Define fiscal year variants IMG → Financial Accounting → Financial Accounting Global Settings → Fiscal Year → Maintain Fiscal Year Variant (Maintain

OB29



Shortened Fisc. Year)

18. Allocate fiscal year variant to a company code

IMG → Financial Accounting → Financial Accounting Global Settings → Fiscal Year → Assign Company Code to a Fiscal Year Variant

OB37

19. Define Variants for Open Posting Periods

IMG → Financial Accounting → Financial Accounting Global Settings → Document → Posting Periods → Define Variants for Open Posting Periods

OBBO

20. Allocate Posting Period Variant to Company Code

IMG → Financial Accounting → Financial Accounting Global Settings → Document → Posting Periods → Assign Variants to Company Code

OBBP

21. Open and Close Posting Periods Accounting → Financial accounting →General ledger → Environment →Current settings → Open and Close Posting Periods

OB52

22. Carry Forward Balance to New Fiscal Year

Accounting → Financial accounting →General ledger → Periodic processing →Closing → Carry Forward → Balances

F.16

23. Define Retained Earning account IMG → Financial Accounting → General Ledger Accounting → Business Transactions → Closing → Carrying Forward → Define Retained Rarnings Account

OB53

24. Run Compact Document Journal

Accounting → Financial accounting →General ledger → Information system →General Ledger Reports → Document →General → Compact Document Journal

25. Run Monthly Balance Audit Trail for Open Item Accounts

Accounting → Financial accounting →General ledger → Periodic processing →Closing → Document → Balance audit trail → Open item accounts → Open Item Account Balance Audit Trail from the Document File



Activity Menu Path Trans

26. Run Monthly Balance Audit Trail for Other Accounts

Accounting → Financial accounting →General ledger → Periodic processing →Closing → Document → Balance audit trail → All accounts → General Ledger from the Document File

27. Create Extract for Accumulated Open Item Balance Audit Trail

Accounting → Financial accounting →General ledger → Periodic processing →Closing → Document → Balance audit trail → Open item accounts → From balance audit trail → Extract for Accumulated Open Item Audit Trail

28. Run Accumulated Open Item Balance Audit Trail

Accounting → Financial accounting →General ledger → Periodic processing →Closing → Document → Balance audit trail → Open item accounts → From balance audit trail → Accts Detailed Listing from Open Item Account Accumulated Audit Trail

29. Create Extract for Accumulated Balance Audit Trail for Other Accounts

Accounting → Financial accounting →General ledger → Periodic processing →Closing → Document → Balance audittrail → All accounts → From balance audit trail → Extract for the Accumulated Historical Balance Audit Trail

30. Run Accumulated Balance Audit Trail for Other Accounts

Accounting → Financial accounting →General ledger → Periodic processing →Closing → Document → Balance audit trail → All accounts → From balance audit trail → Account Details from Historical Accumulated Balance Audit Trail



Cross Company Code Transactions

A cross company code transaction involves 2 or more company codes in one business transaction. For a cross company code transaction, the system will post a separate document in each of the company codes involved.

Examples for cross company code transactions are:• One company code makes purchases for other company codes (Central Procurement)• One company code pays for other company codes (Central Payment)• One company code sells goods to other company code

Steps:• Create Clearing Accounts in each of the company codes. The Clearing Accounts may be GL

Accounts, Customer or Vendor Accounts.• Configure the Automatic Postings for Cross Company Code Transactions by assigning Clearing

Accounts for both the company codes.

Creation of Clearing Accounts in both the Company Codes (FS00)In Company Code # 1 In Company Code # 2

Account Group Current Assets Current LiabilitiesBalance Sheet Account Balance Sheet Account

Short Text Clearing with CC2 Clearing with CC1Long Text Clearing with Company Code 2 Clearing with Company Code 1Account Currency INR INR

Only Bal in Local Currency Only Bal in Local CurrencyLine Item Display Line Item Display

Sort Key 001 001Field Status Group G001 G001

Post Automatically Only Post Automatically Only

Configure Automatic Postings for Cross Company Code Transactions (OBYA)

SPRO > Financial Accounting > General Ledger Accounting > Business Transactions > Prepare Cross Company Code Transactions

Company Code 1: Give CC1Company Code 2: Give CC2 & Enter

Under Posted in: Company Code 1 Cleared against: Company Code 2Receivable à Payable àDebit Posting Key: 40 Credit Posting Key: 50Account Debit: Clearing A/c with CC2 Account Credit: Clearing A/c with CC2

Under Posted in: Company Code 2 Cleared against: Company Code 1Receivable à Payable àDebit Posting Key: 40 Credit Posting Key: 50Account Debit: Clearing A/c with CC1 Account Credit: Clearing A/c with CC1



Cross Company Code Invoice Posting (FB60)Accounting à Financial Accounting à Accounts Payable à Document Entry à Invoice

Display Cross Company Code Document (FBU3)Accounting à Financial Accounting à Accounts Payable à Document à Cross CC Transaction àDisplayGive the Cross Company Code Documents Number Enter SaveReverse Cross Company Code Document (FBU8)Accounting à Financial Accounting à Accounts Payable à Document à Cross CC Transaction àReverse

Give the Cross Company Code Document Number: IBS00025Give the Reversal Reason : 04 (Head of Account wrong) Save

Integration

MM FI Integration

Material Management to Finance

In this step, you enter the system settings for Inventory Management and Invoice Verification transactions for automatic postings to G/L accounts.

You can then check your settings using a simulation function.



Under Further information there is a list of transactions in Materials Management and their definitions.

What are automatic postings?

Postings are made to G/L accounts automatically in the case of Invoice Verification and Inventory Management transactions relevant to Financial and Cost Accounting.

Example:Posting lines are created in the following accounts in the case of a goods issue for a cost center:

Stock account

Consumption account

How does the system find the relevant accounts?

When entering the goods movement, the user does not have to enter a G/L account, since the R/3 System automatically finds the accounts to which postings are to be made using the following data:

Chart of accounts of the company code

If the user enters a company code or a plant when entering a transaction, the R/3 System determines the chart of accounts which is valid for the company code.

You must define the automatic account determination individually for each chart of accounts.

Valuation grouping code of the valuation area

If the automatic account determination within a chart of accounts is to run differently for certain company codes or plants (valuation areas), assign different valuation grouping codes to these valuation areas.

You must define the automatic account determination individually for every valuation grouping code within a chart of accounts. It applies to all valuation areas which are assigned to this valuation grouping code.

If the user enters a company code or a plant when entering a transaction, the system determines the valuation area and the valuation grouping code.

Transaction/event key (internal processing key)

Posting transactions are predefined for those inventory management and invoice verification transactions relevant to accounting. Posting records, which are generalized in the value string, are assigned to each relevant movement type in inventory management and each transaction in invoice verification. These contain keys for the relevant posting transaction (for example, inventory posting and consumption posting) instead of actual G/L account numbers.

You do not have to define these transaction keys, they are determined automatically from the transaction (invoice verification) or the movement type (inventory management). All you have to do is assign the relevant G/L account to each posting transaction.

Account grouping (only for offsetting entries, consignment liabilities, and price differences)

Since the posting transaction "Offsetting entry for inventory posting" is used for different transactions (for example, goods issue, scrapping, physical inventory), which are assigned to different accounts (for example, consumption account, scrapping, expense/income from inventory differences), it is necessary to divide the posting transaction according to a further key: account grouping code.

An account grouping is assigned to each movement type in inventory management which uses the posting transaction "Offsetting entry for inventory posting".

Under the posting transaction "Offsetting entry for inventory posting", you must assign G/L accountsfor every account grouping, that is, assign G/L accounts.



If you wish to post price differences to different price difference accounts in the case of goods receipts for purchase orders, goods receipts for orders, or other movements, you can define different account grouping codes for the transaction key.

Using the account grouping, you can also have different accounts for consignment liabilities and pipeline liabilities.

Valuation class of material or (in case of split valuation) the valuation type

The valuation class allows you to define automatic account determination that is dependent on the material. for example: you post a goods receipt of a raw material to a different stock account than if the goods receipt were for trading goods, even though the user enters the same transaction for both materials.

You can achieve this by assigning different valuation classes to the materials and by assigning different G/L accounts to the posting transaction for every valuation class.

If you do not want to differentiate according to valuation classes you do not have to maintain a valuation class for a transaction.

Requirements

Before you maintain automatic postings, you must obtain the following information:

1. Valuation level ( plant or company code)

Establish whether the materials are valuated at plant or at company code level

When valuation is at plant level, the valuation area corresponds to a plant.

When valuation is at company code level, the valuation area corresponds to a company code.

Define valuation level

2. Chart of accounts and valuation grouping code per valuation area

Find out whether the valuation grouping code is active.

Activate split valuation

If it is not active, determine the chart of accounts assigned to each valuation area (via the company code).

If it is active, determine the chart of accounts and the valuation grouping code assigned to each valuation area.

Group valuation areas

You must define a separate account determination process for chart of accounts and each valuation grouping code.

3. Valuation class per material type

If you wish to differentiate the account determination process for specific transactions according to valuation classes, find out which valuation classes are possible for each material type.

Define valuation classes

4. Account grouping for offsetting entries to stock accounts

Under Define account grouping for movement types, determine for which movement types an account grouping is defined for the transaction/event keys GGB (offsetting entry to stock posting), KON (consignment liabilities) and PRD (price differences).

Default settings

G/L account assignments for the charts of accounts INT and the valuation grouping code 0001 are SAP standard.



Activities

1. Create account keys for each chart of accounts and each valuation grouping code for the individual posting transactions. To do so, proceed as follows:

a) Call up the activity Configure Automatic Postings.

The R/3 system first checks whether the valuation areas are correctly maintained. If, for example, a plant is not assigned to a company code, a dialog box and an error message appear.

From this box, choose Continue (next entry) to continue the check.

Choose Cancel to end the check.

The configuration menu Automatic postings appears.

b) Choose Goto -> Account assignment.

A list of posting transactions in Materials Management appears. For further details of the individual transactions, see Further information.

The Account determination indicator shows whether automatic account determination is defined for a transaction.

c) Choose a posting transaction.A box appears for the first posting transaction. Here you can enter a chart of accounts.

You can enter the following data for each transaction:

Rules for account number assignments

With Goto -> Rules you can enter the factors on which the account number assignments depend:

- debit/credit indicator

- general grouping (= account grouping)

- valuation grouping

- valuation class

Posting keys for the posting lines

Normally you do not have to change the posting keys. If you wish to use new posting keys, you have to define them in the Customizing system of Financial Accounting.

Account number assignments

You must assign G/L accounts for each transaction/event key (except KBS). You can assign these accounts manually or copy them from another chart of accounts via Edit -> Copy.

If you want to differentiate posting transactions (e.g. inventory postings) according to valuation classes, you must make an account assignment for each valuation class.

Using the posting transaction "Offsetting entry for inventory posting", you have to make an account assignment for each account grouping

If the transaction PRD (price differences) is also dependent on the account grouping, you must create three account assignments:

- an account assignment without account grouping

- an account assignment with account grouping PRF

- an account assignment with account grouping PRA

If the transaction KON (consignment and pipeline liabilities) is also dependent on the account grouping, you must create two account assignments:



- an account assignment without account grouping (consignment)

- an account assignment with account grouping (pipeline)

d) Save your settings.

2. Then check your settings with the simulation function.

With the simulation function, you can simulate the following:

Inventory Management transactions

Invoice Verification transactions

When you enter a material or valuation class, the R/3 system determines the G/L accounts which are assigned to the corresponding posting transactions. Depending on the configuration, the SAP system checks whether the G/L account exists

In the simulation you can compare the field selection of the movement type with that of the individual accounts and make any corrections.

If you want to print the simulation, choose Simulation -> Report.

To carry out the simulation, proceed as follows:

a) Choose Settings to check the simulation defaults for- the application area (Invoice Verification or Inventory Management)- the input mode (material or valuation class)- account assignment

Instructions

b) Choose Goto -> Simulation.

The screen for entering simulation data appears.

c) Depending on the valuation level, enter a plant or a company code on the screen.

d) When you simulate Inventory Management transactions, goods movements are simulated. The R/3 system suggests the first movement type for simulation. If several movements are possible with this movement type, you can select a line.

When you simulate Invoice Verification transactions, a list appears on the screen of the possible transaction types. Select a line.

e) Then choose Goto -> Account assignments.

A list appears of the posting lines which can be created by the selected transaction. For each posting line, the G/L account for the debit posting as well as the G/L account for the credit posting are displayed.

f) From this screen, choose Goto -> Movement+ to get a list of the posting lines for the next movement type or transaction type.

If you work with valuation classes, choose Goto -> Valuation class+ to receive the simulation for the next valuation class. This function is not possible when simulating with material numbers.

Choose Goto -> Check screen layout to compare the movement type with the G/L accounts determined by the system and make any necessary corrections.

Note

The simulation function does NOT obviate the need for a trial posting!

Further notes



The following list shows the individual transactions with examples of how they are used. The transaction/event key is specified in brackets.

Agency business: income (AG1)

This transaction can be used in agency business for income deriving from commission (e.g. del credere commission). The account key is used in the calculation schemas for agency business to determine the associated revenue accounts.

Agency business: turnover (AG2)

This transaction can be used in agency business if turnover (business volume) postings are activated in Customizing for the payment types. The account key is specified in Customizing for the billing type.

Agency business: expense (AG3)

This transaction can be used in agency business for commission expenses. The account key is used in the calculation schemas for agency business to determine the associated expense accounts.

Expense/revenue from consumption of consignment material (AKO)

This transaction is used in Inventory Management in the case of withdrawals from consignment stock or when consignment stock is transferred to own stock if the material is subject to standard price control and the consignment price differs from the standard price.

Expenditure/income from transfer posting (AUM)

This transaction is used for transfer postings from one material to another if the complete value of the issuing material cannot be posted to the value of the receiving material. This applies both to materials with standard price control and to materials with moving average price control. Price differences can arise for materials with moving average price if stock levels are negative and the stock value becomes unrealistic as a result of the posting. Transaction AUM can be used irrespective of whether the transfer posting involves a transfer between plants. The expenditure/income is added to the receiving material.

Provisions for subsequent (end-of-period rebate) settlement (BO1)

If you use the "subsequent settlement" function with regard to conditions (e.g. for period-end volume-based rebates), provisions for accrued income are set up when goods receipts are recorded against purchase orders if this is defined for the condition type.

Income from subsequent settlement (BO2)

The rebate income generated in the course of "subsequent settlement" (end-of-period rebate settlement) is posted via this transaction.

Income from subsequent settlement after actual settlement (BO3)

If a goods receipt occurs after settlement accounting has been effected for a rebate arrangement, no further provisions for accrued rebate income can be managed by the "subsequent settlement" facility. No postings should be made to the account normally used for such provisions. As an alternative, you can use this transaction to post provisions for accrued rebate income to a separate account in cases such as the one described.

Supplementary entry for stock (BSD)

This account is posted when closing entries are made for a cumulation run. This account is a supplementary account to the stock account; that is, the stock account is added to it to determine the stock value that was calculated via the cumulation. In the process, the various valuation areas (for example, commercial, tax), that are used in the balance sheet are taxed separately.

Change in stock (BSV)



Changes in stocks are posted in Inventory Management at the time goods receipts are recorded or subsequent adjustments made with regard to subcontract orders.

If the account assigned here is defined as a cost element, you must specify a preliminary account assignment for the account in the table of automatic account assignment specification (Customizing for Controlling) in order to be able to post goods receipts against subcontract orders. In the standard system, cost center SC-1 is defined for this purpose.

Stock posting (BSX)

This transaction is used for all postings to stock accounts. Such postings are effected, for example:

In inventory management in the case of goods receipts to own stock and goods issues from own stock

In invoice verification, if price differences occur in connection with incoming invoices for materials valuated at moving average price and there is adequate stock coverage

In order settlement, if the order is assigned to a material with moving average price and the actual costs at the time of settlement vary from the actual costs at the time of goods receipt

Because this transaction is dependent on the valuation class, it is possible to manage materials with different valuation classes in separate stock accounts.

Caution

Take care to ensure that:

A stock account is not used for any transaction other than BSX

Postings are not made to the account manually

The account is not changed in the productive system before all stock has been booked out of it

Otherwise differences would arise between the total stock value of the material master records and the balance on the stock account.

Account determination of valuated sales order stock and project stock

Note that for valuated sales order stock and project stock (special stock E and Q) and for the transaction/event keys BSX andGBB, you must maintain an account determination to avoid receiving warning messages when entering data (purchase order or transfer posting) for valuated stock.During data entry, the system attempts to execute a provisional account determination for GBB for valuated stock. The system will only replace the provisional account determination for GBB with the correct account determination for the stock account (BSX), in the background, if you enter the data for valuated stock at a later point in time.

Revaluation of other consumption (COC)

This transaction/event key is required for the revaluation of consumption in Actual Costing/Material Ledger.

Revaluation of consumption valuates single-level consumption using the actual prices determined in the Actual Costing/Material Ledger application. This revaluation can either take place in the account where the original postings were made, or in a header account.

The header account is determined using the transaction/event key COC.

Del credere (DEL)

Transaction/event key for the payment/invoice list documents in Purchasing. The account key is needed in the calculation schema for payment/settlement processing to determine the associated revenue accounts.



Small differences, Materials Management (DIF)

This transaction is used in Invoice Verification if you define a tolerance for minor differences and the balance of an invoice does not exceed the tolerance.

Purchase account(EIN), purchase offsetting account (EKG), freight purchase account (FRE)

These transactions are used only if Purchase Account Management is active in the company code.

Note

Due to special legal requirements, this function was developed specially for certain countries (Belgium, Spain, Portugal, France, Italy, and Finland).

Before you use this function, check whether you need to use it in your country.

Freight clearing (FR1), provision for freight charges (FR2), customs duty clearing (FR3), provision for customs duty (FR4)

These transactions are used to post delivery costs (incidental procurement costs) in the case of goods receipts against purchase orders and incoming invoices. Which transaction is used for which delivery costs depends on the condition types defined in the purchase order.

You can also enter your own transactions for delivery costs in condition types.

External service (FRL)

The transaction is used for goods and invoice receipts in connection with subcontract orders.


External service, delivery costs (FRN)

This transaction is used for delivery costs (incidental costs of procurement) in connection with subcontract orders.


Offsetting entry for stock posting (GBB)

Offsetting entries for stock postings are used in Inventory Management. They are dependent on the account grouping to which each movement type is assigned. The following account groupings are defined in the standard system:

AUA: for order settlement

AUF: for goods receipts for orders (without account assignment)and for order settlement if AUA is not maintained

AUI: Subsequent adjustment of actual price from cost center directlyto material (with account assignment)

BSA: for initial entry of stock balances

INV: for expenditure/income from inventory differences

VAX: for goods issues for sales orders withoutaccount assignment object (the account is not a cost element)



VAY: for goods issues for sales orders withaccount assignment object (account is a cost element)

VBO: for consumption from stock of material provided to vendor

VBR: for internal goods issues (for example, for cost center)

VKA: for sales order account assignment(for example, for individual purchase order)

VKP: for project account assignment (for example, for individual PO)

VNG: for scrapping/destruction

VQP: for sample withdrawals without account assignment

VQY: for sample withdrawals with account assignment

ZOB: for goods receipts without purchase orders (mvt type 501)

ZOF: for goods receipts without production orders(mvt types 521 and 531)

You can also define your own account groupings. If you intend to post goods issues for cost centers (mvt type 201) and goods issues for orders (mvt type 261) to separate consumption accounts, you can assign the account grouping ZZZ to movement type 201 and account grouping YYY to movement type 261.

Caution

If you use goods receipts without a purchase order in your system (movement type 501), you have to check to which accounts the account groupings are assigned ZOB

If you expect invoices for the goods receipts, and these invoices can only be posted in Accounting, you can enter a clearing account (similar to a GR/IR clearing account though without open item management), which is cleared in Accounting when you post the vendor invoice.

Note that the goods movement is valuated with the valuation price of the material if no external amount has been entered.

As no account assignment has been entered in the standard system, the assigned account is not defined as a cost element. If you assign a cost element, you have to enter an account assignment via the field selection or maintain an automatic account assignment for the cost element.

Account determination of valuated sales order stock and project stock

Note that for valuated sales order stock and project stock (special stock E and Q) and for the transaction/event keys BSX andGBB, you must maintain an account determination to avoid receiving warning messages when entering data (purchase order or transfer posting) for valuated stock.During data entry, the system attempts to execute a provisional account determination for GBB for valuated stock. The system will only replace the provisional account determination for GBB with the correct account determination for the stock account (BSX), in the background, if you enter the data for valuated stock at a later point in time.

Purchase order with account assignment (KBS)

You cannot assign this transaction/event key to an account. It means that the account assignment is adopted from the purchase order and is used for the purpose of determining the posting keys for the goods receipt.



Exchange Rate Differences Materials Management(AVR) (KDG)

When you carry out a revaluation of single-level consumption in the material ledger for an alternative valuation run, the exchange rate difference accounts of the materials are credited with the exchange rate differences that are to be assigned to the consumption.

Exchange rate differences in the case of open items (KDM)

Exchange rate differences in the case of open items arise when an invoice relating to a purchase order is posted with a different exchange rate to that of the goods receipt and the material cannot be debited or credited due to standard price control or stock undercoverage/shortage.

Differences due to exchange rate rounding, Materials Management (KDR)

An exchange rate rounding difference can arise in the case of an invoice made out in a foreign currency. If a difference arises when the posting lines are translated into local currency (as a result of rounding), the system automatically generates a posting line for this rounding difference.

Exchange Rate Differences from Lower Levels (KDV)

In multi-level periodic settlement in the material ledger, some of the exchange rate differences that have been posted during the period in respect of the raw materials, semifinished products and cost centers performing the activity used in the manufacture of a semifinished or finished product are debited or credited to that semifinished or finished product.

Consignment liabilities (KON)

Consignment liabilities arise in the case of withdrawals from consignment stock or from a pipeline or when consignment stock is transferred to own stock.

Depending on the settings for the posting rules for the transaction/event key KON, it is possible to work with or without account modification. If you work with account modification, the following modifications are available in the standard system:

None for consignment liabilities

PIP for pipeline liabilities

Offsetting entry for price differences in cost object hierarchies (KTR)

The contra entry for price difference postings (transaction PRK) arising through settlement via material account determination is carried out with transaction KTR.

Accruals and deferrals account (material ledger) (LKW)

If the process of material price determination in the material ledger is not accompanied by revaluation of closing stock, the price and exchange rate differences that should actually be applied to the stock value are contra-posted to accounts with the transaction/event key LKW.

If, on the other hand, price determination in the material ledger is accompanied by revaluation of the closing stock, the price and exchange rate differences are posted to the stock account (i.e. the stock is revalued).

Price Difference from Exploded WIP (Lar.) (PRA)

If you use the WIP revaluation of the material ledger, the price variances of the exploded WIP stock of an activity type or a business process are posted to the price differences account with transaction/event key PRA.

Differences (AVR Price) (PRC)

In the alternative valuation run in the material ledger, some of the variances that accrue interest in the cost centers, are transfer posted to the semifinished or finished product.

Price differences (PRD)



Price differences arise for materials valuated at standard price in the case of all movements and invoices with a value that differs from the standard price. Examples: goods receipts against purchase orders (if the PO price differs from the standard pricedardpreis), goods issues in respect of which an external amount is entered, invoices (if the invoice price differs from the PO price and the standard price).

Price differences can also arise in the case of materials with moving average price if there is not enough stock to cover the invoiced quantity. In the case of goods movements in the negative range, the moving average price is not changed. Instead, any price differences arising are posted to a price difference account.

Depending on the settings for the posting rules for transaction/event key PRD, it is possible to work with or without account modification. If you use account modification, the following modifications are available in the standard system:

None for goods and invoice receipts against purchase orders

PRF for goods receipts against production orders andorder settlement

PRA for goods issues and other movements

PRU for transfer postings (price differences in the caseof external amounts)

Price Differences (Material Ledger, AVR) (PRG)

When you carry out a revaluation of single-level consumption in the material ledger during the alternative valuation run, the price difference accounts of the materials are credited with the price differences that are to be assigned to the consumption.

Price differences in cost object hierarchies (PRK)

In cost object hierarchies, price differences occur both for the assigned materials with standard price and for the accounts of the cost object hierarchy. In the course of settlement for cost object hierarchies after settlement via material account determination, the price differences are posted via the transaction PRK.

Price Difference from Exploded WIP (Mat.) (PRM)

If you use the WIP revaluation of the material ledger, the price and exchange rate differences of the exploded WIP stock of a material are posted to the price difference account with transaction/event key PRM.

Price differences, product cost collector (PRP)

During settlement accounting with regard to a product cost collector in repetitive manufacturing, price differences are posted with the transaction PRP in the case of the valuated sales order stock.

This transaction is currently used in the following instances only:

- Production cost collector in Release 4.0

- Product cost collector in IS Automotive Release 2.0 (product cost collector in connection with APO)

Offsetting entry: price differences, product cost collector (PRQ)

The offsetting (contra) entry to price difference postings (transaction PRP) in the course of settlement accounting with respect to a product cost collector in repetitive manufacturing in the case of the valuated sales order stock is carried out via transaction PRQ.

This transaction is currently used in the following instances only:

- Production cost collector in Release 4.0



- Product cost collector in IS Automotive Release 2.0 (product cost collector in connection with APO)

Price Differences from Lower Levels (PRV)

In multi-level periodic settlement in the material ledger, some of the price differences posted during the period in respect of the raw materials, semifinished products, and cost centers performing the activity used in a semifinished or finished product, are transfer posted to that semifinished or finishedproduct.

Price differences for material ledger (PRY)

In the course of settlement in the material ledger, price differences from the material ledger are posted with the transaction PRY.

Expense and revenue from revaluation (retroactive pricing, RAP)

This transaction/event key is used in Invoice Verification within the framework of the revaluation of goods and services supplied for which settlement has already taken place. Any difference amounts determined are posted to the accounts assigned to the transaction/event key RAP (retroactive pricing) as expense or revenue.

At the time of the revaluation, the amounts determined or portions thereof) are posted neither to material stock accounts nor to price difference accounts. The full amount is always posted to the "Expense from Revaluation" or "Revenue from Revaluation" account. The offsetting (contra) entry is made to the relevant vendor account.

Invoice reductions in Logistics Invoice Verification (RKA)

This transaction/event key is used in Logistics Invoice Verification for the interim posting of price differences in the case of invoice reductions.

If a vendor invoice is reduced, two accounting documents are automatically created for the invoice document. With the first accounting document, the amount invoiced is posted in the vendor line. An additional line is generated on the invoice reduction account to partially offset this amount. With the second accounting document, the invoice reduction is posted in the form of a credit memo from the vendor. The offsetting entry to the vendor line is the invoice reduction account. Hence the invoice reduction account is always balanced off by two accounting documents within one transaction.

Provision for delivery costs (RUE)

Provisions are created for accrued delivery costs if a condition type for provisions is entered in the purchase order. They must be cleared manually at the time of invoice verification.

Taxes in case of transfer posting GI/GR (TXO)

This transaction/event key is only relevant to Brazil (nota fiscal).

Revenue/expense from revaluation (UMB)

This transaction/event key is used both in Inventory Management and in Invoice Verification if the standard price of a material has been changed and a movement or an invoice is posted to the previous period (at the previous price).

Expenditure/income from revaluation (UMD)

This account is the offsetting account for the BSD account. It is posted during the closing entries for the cumulation run of the material ledger and has to be defined for the same valuation areas.

Unplanned delivery costs (UPF)

Unplanned delivery costs are delivery costs (incidental procurement costs) that were not planned in a purchase order (e.g. freight, customs duty). In the SAP posting transaction in Logistics Invoice Verification, instead of distributing these unplanned delivery costs among all invoice items as



hitherto, you have the option of posting them to a special account. A separate tax code can be used for this account.

Input tax, Purchasing (VST)

Transaction/event key for tax account determination within the "subsequent settlement" facility for debit-side settlement types. The key is needed in the settlement schema for tax conditions.

Inflation posting (WGB)

Transaction/event key that posts inflation postings to a different account, within the handling of inflation process for the period-end closing.

Goods issue, revaluation (inflation) (WGI)

This transaction/event key is used if already-posted goods issues have to be revaluated following the determination of a new market price within the framework of inflation handling.

Goods receipt, revaluation (inflation) (WGR)

This transaction/event key is used if already-effected transfer postings have to be revaluated following the determination of a new market price within the framework of inflation handling. This transaction is used for the receiving plant, whereas transaction WGI (goods receipt, revaluation (inflation)) is used for the plant at which the goods are issued.

WIP from Price Differences (Internal Activity) (WPA)

When you use the WIP revaluation of the material ledger, the price variances from the actual price calculation that are to be assigned to the WIP stock, an activity type or a business process are posted to the WIP account for activities.

WIP from Price Differences (Material) (WPM)

When you use the WIP revaluation of the material ledger, the price and exchange rate differences that are to be assigned to the WIP stock of a material are posted to the WIP account for material.

GR/IR clearing (WRX)

Postings to the GR/IR clearing account occur in the case of goods and invoice receipts against purchase orders. For more on the GR/IR clearing account, refer to the SAP Library (documentation MM Material Valuation).

Caution

You must set the Balances in local currency only indicator for the GR/IR clearing account to enable the open items to be cleared. For more on this topic, see the field documentation.

GR/IR clearing for material ledger (WRY)

This transaction/event key is not used from Release 4.0 onwards.

Prior to 4.0, it was used for postings to the GR/IR clearing account if the material ledger was active. As of Release 4.0, the transaction is no longer necessary, since postings to the GR/IR account in parallel currencies are possible.

Customers who used the transaction WRY prior to Release 4.0 must make a transfer posting from the WRY account to the WRX account in order to ensure that the final balance on the WRY account is zero.



Material Types

ROH Raw MaterialERSA Stores & SparesVERP Packaging MaterialFERT Finished GoodsHALB Semi Finished GoodsHAWA Traded GoodsDIEN Services

ViewsBasic View, Purchase View, Production View, Sales View, Quality View, Accounting View, Costing View, MRP View, Plant View etc.

Creation of Material Master (MM01)Logistics àMaterial Management àMaterial Master àMaterial à Create General à Immediately

Accounting Views (MM03)Fields: 1) Valuation Category 2) Valuation Class 3) Price ControlValuation Category: Batch Classification & AverageValuation Class: For Raw Material à Indigenous and Imported

Rules: • The Material Master is to be created wrt Material Type• In the Material Master we assign the Valuation Class• For Valuation Class we assign the GL Masters based on the type of Transaction

Price ControlSPRO àMaterial Management à Valuation & Account Assignment à Define Price Control for Material TypesS – Standard Price - will be used for (Finished Goods)V – Moving Average - will be used for (other than Finished Goods)

MM FLOW

1. Purchase Requisition – No FI Entry2. Enquiry, Quotation and Price Comparison – No FI Entry3. Purchase Order – No FI Entry4. Purchase Order Release Procedure – No FI Entry5. Goods Receipt (Will be taken wrt PO) -

Inventory RM Local A/c. Dr (BS – CA) BSXTo GR/IR Clearing A/c. (BS – CL) WRX

6. Invoice Verification –GR/IR Clearing A/c. Dr (BS – CL) WRX

To Vendor A/c. (BS – CL) P.O.7. Consumption –

RM Consumption Local A/c. Dr (P&L Dr) GBB-VBRTo Inventory RM Local A/c. (BS – CA) BSX

8. Production Receipt –Inventory FG A/c. Dr (BS – CA) BSX



To Increase/Decrease in Stocks FG (P&L Cr) GBB-ZOB9. FG Delivery –

Increase/Decrease in Stocks FG Dr (P&L Cr) GBB-VAXTo Inventory FG (BS – CA) BSX

10. Billing – SD Area

FI MM Integration Settings (OBYC)SPRO à Material Management à Valuation and Account Assignment à Account Determination àAccount Determination without Wizard à Configure Automatic Postings (OMWB)Cancel the existing PlantSelect ‘Account Assignment’ Button (OBYC)SD FI Integration

SD FLOW1. Enquiry/Quotation – No FI Entry2. Sales Order – No FI Entry3. Delivery – Without PGI & With PGI

Increase/Decrease in Stocks A/c. Dr GBB – VAXTo Inventory FG BSX

4. Billing -Party A/c. Dr SOCommission A/c. Dr ERS

To Sales – Export A/c. ERLTo Freight Collection A/c. ERF

Pricing Procedure VK11 Condition Type: KOFIMaterial ERSRegion to Region ERLTax Code ERF

SD FI Integration (VKOA)SPRO à Financial Accounting à General Ledger Accounting à Business Transactions à Integration àSales and Distributionà Prepare Revenue Account DeterminationDouble Click 003 Material Group Account KeyApplication Area: V Sales/DistributionCondition Type: KOFIAccount Assignment Goods Account KeyTrading Goods ERL RevenueFinished Goods ERS Sales DeductionsServices ERF Freight Revenue



Controlling

Basic Settings

Maintain Controlling Area (OKKP)Maintain VersionsMaintain Number Ranges for Controlling Documents (KANK)

Cost Element Accounting

Create Primary Cost Element in FI and COCreate Secondary Cost Element:Creation of GL Account & Cost Element at FI Level (FS00)Creation of Cost Element at CO Level (KA01)Automatic Creation of Cost Element (OKB2)Create Cost Element Group (KAH1)

Cost Center Accounting

Create Cost Center (KS01)Create Cost Center Group (KSH1)Post the Transaction in FI (F-02)To get Cost Center wise Report (KSB1)To See CO Document Numbers (KSB5)Repost Line Items (KB61):Repost Costs (KB11N):Planning Cost Center wise (KP06) To View the Report Planned, Actual and Variance (S_ALR_87013611)AssessmentCreation of Secondary Cost Element (KA06)Creation of Assessment Cycle (S_ALR_87005742)Execution of Assessment Cycle (KSU5)

Internal Orders

Creation of Order Types (KOT2_OPA)Creation of New Field Status Group where Cost Center and Internal Order both are mandatory FieldsCreation of GL Master and Cost Element (FS00)Creation of Internal Orders (KO01)Creation of Internal Order Group (KOH1)Posting of Transaction (F-02)To View Internal Order Report (KOB1)Repost Line Items (KB61)Repost Costs (KB11N)Planning Internal Order wise (KPF6)To View Plan/Actual/Variance Report (S_ALR_87012993)Creation of Bank Term Loan A/c. under Secured Loans (FS00)Creation of ‘Forex Gain/Loss A/c’ under Admn Expenses (FS00)



Creation of Valuation Method (OB59)Prepare Automatic Postings for FC Valuation (OBA1) Assignment of ‘Exchange Rate Difference Key’ in GL Master (FS00)Creation of Sub Asset (AS11)Maintain Allocation StructureMaintain Settlement ProfileCreation of Order Type (KOT2_OPA)Assign Element Group KOAO (KANK)Creation of Internal Order (KO01)Assign Order in the Cost Element (KA02)Posting of Bank Term Loan (F-02)Enter Exchange Rate in Forex TableForex Loan Revaluation Run (F.05)To See Internal Order Report (KOB1)Execution of Internal Order Settlement (KO88)

Profit Center Accounting

Set Controlling AreaMaintain Controlling Area SettingsCreation of Dummy Profit Center (KE59)Set Control Parameters for Actual DataMaintain Plan VersionsCreation of Profit Center (KE51)Assignment of Profit Center in Cost Center (KS02)Creation of Sales A/c. and Revenue Cost Element (FS00)Automatic Account Assignments for Revenue Elements (OKB9)Derivation Rule for Assignment of Balance Sheet items to Profit Center (3KEH)(Where Business Area = Profit Center)Derivation Rule for Finding the Profit CenterDefine Number Ranges for Local Documents (GB02)Planning of P&L items for Profit Centers (7KE1)Planning Balance Sheet Accounts (7KE3)Profit Center Plan/Actual/Variance P&L items (S_ALR_87013326)Profit Center Plan/Actual/Variance Balance Sheet items (S_ALR_87013336)


Create Operating ConcernAssign Controlling Area to Operating ConcernCreate Number Ranges for actual postings in PAActivation of PAMapping of SD Condition types to COPA Value FieldsMaintain PA Transfer Structure for Direct PostingsChange Field Status Group to make Profitability Segment mandatoryDefine Form for Profitability ReportsCreate Profitability ReportExecute the Profitability Report



Overview of Controlling

Controlling provides you with information for management decision-making. It facilitates coordination, monitoring and optimization of all processes in an organization. This involves recording both the consumption of production factors and the services provided by an organization.

As well as documenting actual events, the main task of controlling is planning. You can determine variances by comparing actual data with plan data. These variance calculations enable you to control business flows.

Income statements such as, contribution margin accounting, are used to control the cost efficiency of individual

Over view of Controlling Owner of the document : Srinivasa Rao Thotakura

1



Slide 2


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Controlling• Controlling provides you with information for management

decision-making. It facilitates coordination, monitoring and optimization of all processes in an organization. This involves recording both the consumption of production factors and the services provided by an organization.

• As well as documenting actual events, the main task of controlling is planning. You can determine variances by comparing actual data with plan data. These variance calculations enable you to control business flows.

• Income statements such as, contribution margin accounting, are used to control the cost efficiency of individual areas of an organization, as well as the entire organization.

Integration• Controlling (CO) and Financial Accounting (FI) are independent

components in the SAP system. The data flow between the two components takes place on a regular basis.

Organization in Controlling

Use

Using the SAP system, you can define each of the organizational units in your organization from the

perspective of an SAP application component.

In the Financial Accounting (FI) component, you can define the organizational units for accounting in

the Controlling (CO) component under controlling aspects.

The SAP system has direct links between internal and external accounting. This means that FI and CO

organizational units are related.

Integration

You assign organizational units from the Financial Accounting component to the units in the Controlling

component. This enables you to transfer postings relevant to cost accounting on to Controlling. The

following sections describe the organizational units in other components, which have cross-component

relationships to units in Controlling. You cannot define these organizational units separately from one

another.

Cross-component relationships exist between the following organizational units in internal and external

accounting:

Company code in the Financial Accounting component (FI)

Business area in the Financial Accounting component (FI)

Controlling area in the Controlling component (CO)



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Scope of Modules

• Basic Settings • Cost Centre Accounting • Internal Order• Profit Centre Accounting • Profitability Analysis • Overview of Product Costing



Slide 4


4

Flow Chart of Controlling

Company

Cost CentreAccounting Internal Order Profit Centre

Accounting

Company. Code

Profitability Analysis Product Costing

Controlling Area

Controlling Area

The Controlling area may be same as company or it can be at company code level also

When are using the Cross company code posting the Chart the accounts should be the same for all

company codes

The controlling are can assign more than more than one company code

In Basic settings of the controlling are we will create the number ranges and Planning Version for the

Fiscal year. The use of number ranges in controlling are to transfer the posting from FI to do the

Reposting, distribution, assessment with in the Controlling area and Planning version to do the Planning

according to the fiscal year



Slide 5


5

Cost Centre Accounting

• Cost Centre Accounting is used to analyze the overhead costs according to where they were incurred with the organization

Purpose• You use Cost Center Accounting for controlling purposes within

your organization. The costs incurred by your organization should be transparent. This enables you to check the profitability of individual functional areas and provide decision-making data for management. This requires that all costs be assigned according to their source. However, source-related assignment is especially difficult for overhead costs. Cost Center Accounting lets you analyze the overhead costs according to where they were incurredwithin the organization

• Dividing an organization into cost centers allows you to follow several goals, depending on the cost accounting method.

Features

Entering actual costs

Primary costs can be transferred to Cost Accounting from other components, for example, Materials

Management (MM), Asset Accounting (AA), Payroll Accounting (PY).Additional costs and outlay costs

are recorded using the accrual method.

Allocating actual costs

You can use various methods to further allocate the actual costs you have recorded, according to their

source. The R/3 System distinguishes between transaction-based allocations, which occur within one

period, and period-based allocations, which occur at period end.

Planning activities and costs

You can use planning to define organizational targets and carry out regular cost-effectiveness checks.

Variances can be calculated by comparing the actual costs and activities with the plan values. These

variances serve as a control signal, which helps you to correct business processes, when required.

You can plan costs and activities to determine allocation (activity) prices.

Allocating plan costs

All actual allocations that occur for cost centers can also be planned (for example, distribution,

assessment, indirect activity allocation).

Entering plan and actual statistical key figures

Statistical key figures are used as the basis for the indirect allocation methods, as well as for evaluations in

the information system (for example, employees, telephones).

Activity Accounting



Activity Accounting uses the activity produced by a cost center as the tracing factor for the costs. You can

use activities to measure the operating rate or the rate of capacity utilization for a cost center. The target

costs of the cost center refer to the activity output.

Depending on the source of the costs, the activities of a cost center are divided into various activity types

(for example, for the Work center cost center: Repair hours or Assembly hours.

Information system

The information system provides tools with which you can analyze the cost flows that have occurred in

your organization. You can carry out standard recurring evaluations; and create special reports for unique

tasks or situations.

Slide 6


6

Internal OrdersPurpose• Internal orders are normally used to plan, collect, and settle the costs of

internal jobs and tasks. The SAP system enables you to monitor your internal orders throughout their entire life-cycle; from initial creation, through the planning and posting of all the actual costs, to the final settlement and archiving

Internal order management is the most detailed operational levelof costand activity accounting. It can be used for:

• Cost monitoring, for example, where costs need to be looked at from object-related aspects, unlike in Cost Element Accounting or Cost Center Accounting

• Assisting decision-making, when you need to decide between in-house production and external procurement

Features of Internal Orders

Internal orders are two types 1) Real orders 2) Statistical Orders. Real orders are settled against the cost

object and statistical order only for information

You can use master data to assign certain characteristics to your internal orders, which enables you to

control which business transactions can be used with the internal order.

Internal order planning enables you to roughly estimate the costs of a job before the order starts and to

make an exact calculation at a later date. You can choose between various planning approaches to

compare the effectiveness of different methods.

You can assign and manage budgets for internal orders.

You apply the actual costs incurred by a job to your internal orders using actual postings. In Financial

Accounting, you can assign primary cost postings (such as the procurement of external activities and

external deliveries) directly to internal orders.



In period-end closing you can use various different allocation methods (for example, overhead costing) to

allocate costs between different areas of Cost Accounting.

Order settlement enables you to transfer the costs incurred by an order to the appropriate receivers.

The information system for internal orders enables you to track planned and assigned costs on your orders

in each stage of the order life-cycle. You can archive internal orders that you no longer require. See

Archiving.


7

Profit Center Accounting• Profit Center Accounting (EC-PCA) lets you determine profits and

losses by profit center using either period accounting or the cost-of-sales approach. It also lets you analyze fixed capital and so-called “statistical key figures” (number of employees, square meters, and so on) by profit center. Consequently, you can calculate all key figures commonly used in cost accounting (return on investment, cash flow, sales per employee, and so on).

• A profit center is a management-oriented organizational unit used for internal controlling purposes. Dividing your company up intoprofit centers allows you to analyze areas of responsibility and to delegate responsibility to decentralized units, thus treating them as “companies within the company”

• The profit center differs from a cost center in that cost centers merely represent the units in which capacity costs arise, whereas the person in charge of the profit center is responsible for its balance of costs and revenues.

Features :-The main aim of Profit Center Accounting is to determine profit for internal areas of

responsibility. It lets you determine profits and losses using either period accounting or the cost-of-sales

approach.

EC-PCA lets you set up your profit centers according to product (product lines, divisions), geographical

factors (regions, offices or production sites) or function (production, sales). You need to make the settings

in Basic Functions in order to divide the company into internal areas of responsibility. You divide you

business into profit centers by assigning the profit centers to the various master data that is relevant for

profits (materials, cost centers, orders, projects, sales orders, assets, cost objects and profitability

segments). This lets you set up Profit Center Accounting in a way that meets your company’s

requirements regardless of what sector of industry your company is in (machinery, chemicals, services,

and so on) or what form of manufacturing you employ (repetitive manufacturing, make-to-order

production, continuous flow production).

Every profit center is assigned to the organizational unit Controlling area. The profit centers in a

company code belong to a standard profit center hierarchy that is also assigned to the controlling area.

All profit-relevant business transactions are updated in the profit center hierarchy according to G/L

account at the same time they are processed in the original module of the SAP system. This ensures that



the entire flow of goods and services within a company is transformed in goods and services relationships

between profit centers. This is true both with actual postings and in planning.

You can also transfer the balances and balance changes of certain balance sheet accounts to profit centers

in real-time or periodically.




8

Profitability Analysis• Profitability Analysis (CO-PA) enables you to evaluate market segments,

which can be classified according to products, customers, orders or any combination of these, or strategic business units, such as salesorganizations or business areas, with respect to your company's profit or contribution margin.

• The aim of the system is to provide your sales, marketing, product management and corporate planning departments with information to support internal accounting and decision-making.

• Two forms of Profitability Analysis are supported: costing-based and account-based.

• Costing-based Profitability Analysis is the form of profitability analysis that groups costs and revenues according to value fields and costing-based valuation approaches, both of which you can define yourself. It guarantees you access at all times to a complete, short-term profitability report.

• Account-based Profitability Analysis is a form of profitability analysis organized in accounts and using an account-based valuation approach. The distinguishing characteristic of this form is its use of cost and revenue elements. It provides you with a profitability report that is permanently reconciled with financial accounting.

Features :-

CO-PA, you can define your master data, the basic structures of this form of profitability analysis. This

includes both units you want to evaluate (characteristics) and the categories in which you analyze values.

In costing-based CO-PA, you define "value fields" in which to store your data for analysis. In account-

based CO-PA, the values are structured by account.

The actual postings represent the most important source of information in CO-PA. You can transfer both

sales orders and billing documents from the Sales and Distribution (SD) application component to CO-PA

in real-time. In addition, an interface program is available to let you transfer external data to the R/3

System. You can also transfer costs from cost centers, orders and projects, as well as costs and revenues

from direct postings (G/L account postings in FI, orders received in MM, and so on) or settle costs from

CO to profitability segments.

In costing-based CO-PA, you can valuate incoming sales orders or billing documents to automatically

determine anticipated sales deductions or costs. You can also revaluate your data periodically to adjust the

initial, real-time valuation or add the actual costs of goods manufactured.




9

Profitability Analysis 2

You can also use both of these types of CO-PA simultaneously.

In CO-PA Planning, you can create a sales and profit plan. Whereas both types of Profitability Analysis

can receive actual data in parallel, there is no common source of planning data. Consequently, you always

plan either in accounts (account-based CO-PA) or in value fields (costing-based CO-PA). In costing-based

CO-PA you can use automatic valuation to calculate planned revenues, sales deductions and costs of

goods manufactured based on the planned sales quantity.

The manual planning function lets you define planning screens for your organization. With this you can

display reference data in planning, calculate formulas, create forecasts, and more. Planning can be

performed at any degree of detail. For example, you can plan at a higher level, and have this data

distributed top-down automatically.

In automatic planning, you can copy and revaluate actual or planning data for a large number of

profitability segments at once. You can also transfer planned sales quantities from (costing-based) CO-PA

to Sales and Operations Planning (SOP) for the purpose of creating a production plan there.

The Information System lets you interactively analyze existing data from a profitability standpoint using

the functions of the drilldown reporting tool. There you can navigate through a multidimensional "data

cube" using a number of different functions (such as drilldown or switching hierarchies). The system

displays data in either value fields or accounts, depending on the currently active type of Profitability

Analysis and the type to which the report structure is assigned. (Each report structure is assigned to either

costing-based or account-based CO-PA.)




10

Product Cost Controlling

PurposeThe component CO-PC-IS (Product Cost Controlling Information System)provides an extensive and powerful range of reports for thefollowing areas:Product Cost Planning Cost Object Controlling with the subcomponents

Product Cost by Period Product Cost by Order Product Cost by Sales Order Costs for Intangible Goods and Services

Actual Costing / Material LedgerYou can use the Information System to evaluate the data generated inthe respective components. The information system provides reportsfor both standard and specialized analysis purposes.Integration

• The information system is a part of Product Cost Planning, the application component Cost Object Controlling, and Actual Costing / Material Ledger.

Features

The standard setup of the Product Cost Controlling Information System is a structured report list from

which you can choose the reports you need.

The standard reports provided in the R/3 System are presented in a structure predefined by SAP. You can

change this structure to suit your own needs, and add your own custom reports.

The documentation for the Product Cost Controlling Information System is oriented around the structure

of the SAP menu. This ensures easy access to the desired information in the documentation, as navigating

through the documentation mirrors navigating through the menu.

Integration

The information system is a part of Product Cost Planning, the application component Cost Object

Controlling, and Actual Costing / Material Ledger.




11

Purpose of Product Cost Planning

• You can use Product Cost Planning to do the following:• To calculate the non-order-related cost of goods manufactured and

cost of goods sold for each product unit • To establish how the costs are broken down for each product, andto

calculate the value added for each step of the production process ( Concept of Cost Rollup)

• To optimize the cost of goods manufactured through comparison costing ( Product Cost Controlling Information System)

• To provide basic information for other R/3 applications, for example:

• To establish standards with which to assess production efficiency in Cost Object Controlling

• To update prices in the material master record and in Profitability analysis

• Lower price limits for Sales and Distribution

Use

Overhead costs are costs that can only be assigned to the process order indirectly, such as electricity costs

or general storage costs.

Overhead costs are assigned to the process order by way of overhead surcharges, or they are determined

in Activity-Based Costing (see also Dynamic Template Allocation in Actual). They are updated in the

order under the cost elements defined in the costing sheet.

Process Flow

A costing variant is defined in Customizing for each order type and plant. The costing variant refers to a

valuation variant, which refers to a costing sheet. The costing sheet determines what overhead surcharges

are assigned to the order.

The costing sheet specifies:

To which direct costs surcharges are applied

Under which conditions a surcharge is calculated

How high, depending on these conditions, the surcharge percentage is

Which object (for example, a cost center) is credited under which cost element during actual postings




12

Features -of Product Cost Planning

The following graphic illustrates the aims of Product Cost Planning,which are:• Calculation of the cost of goods manufactured (COGM) and the cost of goods sold (COGS)

of a product • Analysis of the costing results using the various reports available • Provision of information for other SAP applications

The following table describes the reports with which you can analyze the costing results:

Cost component split

A view of the costs of a material cost estimate broken down into cost groups, such as material costs,

production costs, and overhead costs. Itemization

Detailed information about the costs contained in a material cost estimate or base object cost estimate

Itemization by cost element

Detailed information about the costs contained in a material cost estimate or base object cost estimate,

sorted by cost element

Costed multilevel BOM

Quick overview of the BOM and costs of a material cost estimate or base object cost estimate in

hierarchical form

Partner cost component split

Overview of the value added portions of organizational units (partners) in relation to the total costs of a

material



Basic Settings for Controlling

Maintain Controlling Area (OKKP)

SPRO à Controlling à General Controllingà OrganizationàMaintain Controlling Area(Assignment Control à Controlling Area same as Company Code, Check on ‘Activity Type’, Check on ‘Profit Center’ & Assign to Company Code)

Select Activate Components button



Select Assign company Code button à assign the company codes and save

Maintain VersionsSPRO à Controllingà General Controlling à Organization àMaintain Versions

Select Plan/Actual Version, 0Select the ‘Settings by Fiscal Year’ Gives the Controlling area Give the fiscal year 2007 and Save

Maintain Number Ranges for Controlling Documents (KANK)SPRO à Controlling à General Controlling à Organization à Maintain Number Ranges for Controlling DocumentsCreate Group ‘Controlling Area for XYZ’ with Interval 1 to 100000 and Assign the Element Group Give the Controlling Area: IBSSelect the group’s button Select the Number Range informationCOIN: - CO through Postings from FIRKIU: - Actual Overhead Assessment RKP1:- Planning Primary CostRKU1: Repost Cost RKU3 – Repost Co line Items

Double click the Number ranges à from menu àEdit à assign Element Groups Save

Cost Element Accounting (CO-OM-CEL)



Cost and Revenue Element Accounting provides you with an overview of the costs and revenues that occur in an organization. Most of the values are moved automatically from Financial Accounting to Controlling. Cost and Revenue Element Accounting only calculates costs which either do not have another expense or only one expense in Financial Accounting.

If needed, reconciliation of the values in Financial Accounting and Controlling takes place in Cost and Revenue Element Accounting.

For more information, see the SAP Library under Financials ® Controlling ® Cost Element Accounting

Primary Cost Element: Cost Element & Revenue Element (Income & Expenditure in GL)Secondary Cost Element: For Apportionment (Assessment) from one Cost Center to other Cost Center

Creation of GL Account & Cost Element at FI Level (FS00)

Give the Cost Element Category ‘1’ Primary Costs / Cost Reducing Revenues, SaveCreation of Cost Element at CO Level (KA01)

Accounting à Controllingà Cost Element Accounting à Master Data à Cost Element à Individual Processing à Create PrimaryGive the Cost Element: 400000Valid from 01.01.2007 to 31.12.9999Cost Element: 01 (Primary Costs / Cost Reducing Revenues)Save

Automatic Creation of Cost Element (OKB2)



SPRO à Controlling à Cost Element Accounting à Master Data àCost Elements à Automatic Creation of Primary/Secondary Cost Element àMake Default SettingsGive the Chart of Account: IBSGive the Account from 400100 to 400200 Cost Element Category: 01 Save

Create Cost Element Group (KAH1)Accounting à Controlling à Cost Element Accounting àMaster Data à Cost Element Group à CreateGive the Controlling Area: IBS (Controlling Area for IBS)Give the Cost Element group: IBS_ADMNGive the Description: Cost element group for IBS_ADMN

Cost Center Accounting

Cost Center Accounting (CO-OM-CCA)

You use Cost Center Accounting for controlling purposes within your organization. It is useful for a source-related assignment of overhead costs to the location in which they occurred.

For more information, see the SAP Library under Financials ® Controlling ® Cost Center Accounting.

Activity-Based-Accounting (CO-OM-ABC)

Activity-Based Costing analyzes cross-departmental business processes. The goals of the whole organization and the optimization of business flows are prioritized.

For more information, see the SAP Library under Financials ® Controlling ® Activity-Based Costing.

Create Cost Center (KS01)Accounting à Controlling à Cost Center Accounting à Master Data à Cost Center à Individual Processing à Create



Enter

Save



Create Cost Center Group (KSH1)Accounting àControlling à Cost Center Accounting àMaster Data à Cost Center Group àCreate

Enter

To get Cost Center wise Report (KSB1)Accounting à Controlling à Cost Center Accounting à Information System à Reports for Cost Center Accounting à Line Items à Cost Centers: Actual Line Items

Execute



To See CO Document Numbers (KSB5)Accounting à Controlling à Cost Center Accounting à Information System à Reports for Cost Center Accounting à Line Items à CO Documents: Actual CostsGive the document number: 100000Execute

Repost Line Items (KB61): Accounting à Controlling à Cost Center Accounting à Actual Postings àRepost Line Items à EnterFor transferring values from one Cost Center to other Cost Centers, FI Document is the base, Assign Element Group RKU3 in KANK

Repost Costs (KB11N): When a new Cost Center is created (FI Document not required, Cost Element is the base to Post to a newly created Cost Center or Department), Assign Element Group RKU1 in KANKAccounting à Controlling à Cost Center Accounting à Actual Postings à Manual Posting of Costs àEnter

Planning Cost Center wise (KP06): To Plan Fixed Costs Cost Element wise in each Cost Center, Assign Element Group RKP1 in KANKAccounting à Controlling à Cost Center Accounting à Planning à Cost & Activity Inputs à Change

To View the Report Planned, Actual and Variance (S_ALR_87013611)Accounting > Controlling > Cost Center Accounting > Information System > Reports for Cost Center Accounting > Plan/Actual Comparisons > Cost Centers > Actual/Plan/Variance

Distribution

Amounts and quantities of one or more sender objects are distributed to one or more receiver objects, from service cost centers to production cost centers, for example. The debit and credit postings for the distribution occur under the original account/original cost element with which the amounts and quantities are posted at the sender. The information of the original account/original cost element remains intact.

The distribution can be carried out with actual and plan data.

Assessment

The assessment works in the same way as the distribution. However, with the assessment, the debit and credit postings do not occur under the original account or the original cost element but under an assessment account or an assessment cost element. The information of the original account/original cost element is lost.

The assessment can be carried out with actual and plan data.

Secondary Cost Elements is used to allocate costs for internal activities.

Secondary cost elements do not correspond to any G/L account in Financial Accounting. They are used only in Controlling and consequently cannot be defined in FI as an account.

Steps for Assessment



• Create Secondary Cost Element• Assign Element Group RKIU (Actual Overhead Assessment)• Create Assessment Cycle• Execute Assessment Cycle

Creation of Secondary Cost Element (KA06)Accounting à Controlling à Cost Element Accounting à Master Data à Cost Element à Individual Processing à Create SecondaryGive the Secondary Cost Element : Internal (Service to Production)Valid from : 01/01/2007 to 31.12.9999Name: Internal Description: Secondary Cost element for IBSCost Element Category: 42 (Assessment)Save

Creation of Assessment Cycle (S_ALR_87005742)Accounting à Controlling à Cost Center Accounting à Period End Closing à Current Settings àDefine AssessmentCreate Actual AssessmentGive Cycle NameCheck on ‘Iterative’ Interdependent TransfersAttach Segment: Service to Production Assessment Cost Element: Give ‘Secondary Cost Element’ NumberSender Rule: Posted AmountsSelect ‘Actual Values’Receiver Rule: Fixed PercentagesIn ‘Sender/Receiver’ Tab give Sender and Receiver Cost Center DetailsIn ‘Receiver Tracing Factor’ Tab give the Portions of Apportionment

Execution of Assessment Cycle (KSU5)Accounting à Controlling à Cost Center Accounting à Period End Closing à Single Functions àAllocations à AssessmentGive Period, Select Test Run & Detailed Lists and Give the Cycle Name createdExecuteSee the Report through ‘Receiver’ as well as ‘Sender’ ButtonsDeselect Test Run and Execute



Internal Orders (CO-OM-OPA)

You use internal orders to collect and control according to the job that incurred them. You can assign budgets for these jobs, which the system monitors, to ensure that they are not exceeded.

To Know –• Vehicle wise Costs• Telephone wise Costs• RM Consumption for a particular Production Order• Exhibition Costs

Steps:• Creation of Order Types• Creation of New Field Status Group where Cost Center and Internal Order both are mandatory

Fields• Creation of Internal Orders• Creation of Internal Order Groups• View Internal Order Report• Repost Line Items• Repost Costs• Planning Internal Order wise• View Plan/Actual/Variance Report

Creation of Order Types (KOT2_OPA)SPRO à Controlling à Internal Orders à Order Master Data à Define Order TypesOrder Category: 01 ‘Internal Order – Controlling’Order Type: Veh (any) Order Type for VehiclesPlanning Profile: 000001 ‘General Plan Profile’Object Class: Overhead CostsCheck on ‘Release Immediately’ & SaveAssign Order Type ‘Veh’ to ‘Orders: External Numbers Check Box’ & SaveSelect Back Arrow & Save once again

Creation of New Field Status Group where Cost Center and Internal Order both are mandatory FieldsSPRO à Financial Accounting à FAGS à Document à Line Item à Controls à Maintain Field Status VariantsSelect G004 Cost Accounts, Copy as G002 and give name: Cost Accounts CC & IO mandatory, Enter & SaveDouble Click Additional Account Assignments of G002 and make‘CO/PP Order’ Field: Required Entry‘Quantity’: Optional

Internal order

Real Orders (Settlement Profile’ will be required only for Real Orders) which we cab settle against the cost objective)

Statistical Orders: Statistical Orders only for Information purposes



Creation of GL Master and Cost Element (FS00)Create ‘Vehicle Fuel’ Account with ‘G002’ (Cost Acts CC & IO) as Field Status Group

Creation of Internal Orders (KO01)Accounting à Controlling à Internal Orders àMaster Data à Special Functions à Order à CreateOrder Type: Veh & EnterOrder: Give a Vehicle NumberObject Class: OverheadControl Data Tab à

System Status: REL (Release)Check on ‘Statistical Order’

Create as many Orders as required in the above way

Creation of Internal Order Group (KOH1)Accounting à Controlling à Internal Orders àMaster Data à Order Group à Create

Posting of Transaction (F-02)System will ask for ‘Cost Center’ and ‘Internal Order’ while Posting the Transaction

To View Internal Order Report (KOB1)Accounting à Controlling à Internal Orders à Information Systems àReports for Internal Orders àLine Items à Orders: Actual Line Items

Ø Give Order No. & Execute

Repost Line Items (KB61)Accounting à Controlling à Internal Orders àActual Postings à Repost Line Items à Enter

Give the FI Document Number & through New Account Assignment Repost to other cost center and other order.

Repost Costs (KB11N)Accounting à Controlling à Internal Orders à Actual Postings àManual Reposting of Costs à EnterSelect Screen Variant: Cost Center/Order/Per.No.

Give the details of Old Cost Center, Old Order, Cost Element, New Cost Center, New Order etc.

Planning Internal Order wise (KPF6)Accounting à Controlling à Internal Orders à Planning à Cost & Activity Inputs à ChangePlan Version : 0Give Cost Element Range 400000 to 500000Select ‘Form Based’ as well as ‘Overview Screen’ and Plan Costs for the required Cost Elements.

Save

To View Plan/Actual/Variance Report (S_ALR_87012993)Accounting à Controlling à Internal Orders à Information System à Reports for Internal Orders àPlan Actual Comparisons > Orders: Actual/Plan/VarianceGive Period, Plan Version and Order & Execute



Real OrdersForeign Exchange Revaluation:

Loan taken in USD 1000 @ 45/- 45000/-As on 31.03.2004 1000 @ 50/- 50000/-

----------Forex Loss 5000/-

----------GL Entry à

Forex Loss A/c. Dr. 5000To FC Loan A/c. 5000

CO Entry à Through Internal (Real) Order the Loss will be posted to the Asset.

Steps:• Create Accounts Required – Bank Term Loan A/c. & Forex Profit/Loss A/c.• Creation of Valuation Method• Prepare Automatic Postings for FC Valuation• Assignment of Exchange Rate Difference Key in GL Master• Creation of a Sub Asset (For Forex Gain/Loss on the Asset)• Maintain Allocation Structure• Maintain Settlement Profile• Creation of Order Type• Assign Element Group KOAO• Creation of Internal Order• Assign Order in the Cost Element (in Forex Gain/Loss A/c.)• Posting of FC Term Loan• Enter Exchange Rate in Forex Table• Forex Loan Revaluation Run• Execution of Internal Order Settlement

Creation of Bank Term Loan A/c. under Secured Loans (FS00)Bank Term Loan A/c. A/c Currency: USD Field Status Group: G005Deselect only Balances in Local CurrencyCreation of ‘Forex Gain/Loss A/c’ under Admn Expenses (FS00)Forex Gain/Loss A/c. INR Only Balances in Local CurrencyField Status Group: G002 (CC&IO Mandatory) SaveCost Element Category: 1 (Primary Costs/Cost Reducing Revenues)Default Cost Center Assignment: Give a Cost Center

Creation of Valuation Method (OB59)SPRO à Financial Accounting à General Ledger Accounting à Business Transactions à Closing àValuating à Define Valuation MethodsGive a name for Valuation Method: XYZ1 Desc: FC Valuation for XYZSelect ‘Always Valuate’Doc Type: SADebit Balance Exchange Rate Type: BCredit Balance Exchange Rate Type: BSelect ‘Determine Rate Type from Account Balance’

Prepare Automatic Postings for FC Valuation (OBA1) (Defining Exchange Rate Difference Key)



SPRO > Financial Accounting > General Ledger Accounting > Business Transactions > Closing > Valuating > Prepare Automatic Postings for FC ValuationDouble click ‘Exchange Rate Difference in FC Balances’ KDBExchange Rate Difference Key: ABC (any)Expense A/c.: GL A/c. of ‘Forex Gain/Loss’E/R Gains A/c.: GL A/c. of ‘Forex Gain/Loss’

Assignment of ‘Exchange Rate Difference Key’ in GL Master (FS00)In Bank Term Loan A/c. under Control Data Tab Assign Exc Rate Dif Key ‘ABC’

Creation of Sub Asset (AS11)Asset: Give the Main Asset Number Desc: Forex Gain/Loss on AssetCapitalized on: 31.03.2004Depreciation Area Tab à Ord Depreciation Start Date: 01.04.2004

Maintain Allocation StructureSPRO à Controlling à Internal Orders à Actual Postings à Settlement à Maintain Allocation StructureSelect ‘A1’ CO Allocation StructureIn ‘Assignments’ Select 30 Other CostsIn ‘Source’ à From Cost Element: Give ‘Forex Gain/Loss A/c.’In ‘Settlement Cost Elements’ à Receiver: ‘FXA’ Fixed AssetCheck on ‘By Cost Element’

Maintain Settlement ProfileSPRO à Controlling à Internal Orders à Actual Postings à Settlement àMaintain Settlement ProfileSettlement Profile: IO Desc: Fixed Asset Settlement Profile for XYZAllocation Structure: ‘A1’ CO Allocation StructureValid Receiver à Fixed Asset: ‘1’ Can be SettledOther Parameters à Doc Type: AA Max No of Distribution Rules: 999Indicators à Check on ‘% Settlement’

Check on ‘Equivalence Numbers’Check on ‘Amount Settlement’

Creation of Order Type (KOT2_OPA)SPRO à Controlling à Internal Orders à Order Master Data à Define Order TypesOrder Category: ‘01’ Internal Order Controlling & EnterOrder Type: FCLV (any) Foreign Currency RevaluationSettlement Profile: IOPlanning Profile: 000001Object Class: OverheadsRelease Immediately & SaveIn ‘Assign/Change Intervals’ à Assign Order Type ‘FCLV’ to ‘Orders’

Assign Element Group KOAO (KANK)Assign ‘KOAO’ to ‘Controlling Area for XYZ’

Creation of Internal Order (KO01)Order Type: FCLV Foreign Currency RevaluationOrder: Bank Term Loan Desc: Bank Term Loan Revaluation



Settlement Rule à Category: FXA Fixed Asset Settlement Receiver: Sub Asset No.Percentage: 100 Save & Enter the Message

Assign Order in the Cost Element (KA02)Cost Element: Forex Gain/Loss A/c. & EnterDefault Account Assignment Tab à Order: Bank Term Loan Save

Posting of Bank Term Loan (F-02)Post Loan Receipt in USD with user given Rate

Enter Exchange Rate in Forex TableSPRO > General Settings > Currencies > Enter Exchange Rates

Forex Loan Revaluation Run (F.05)Accounting à Financial Accounting à General Ledger à Periodic Processing à Closing à Valuate àFC ValuationCo. Code: XYZ Evaluation Key Date: 31.03.2004Valuation Method: XYZ1Selections Tab à Check on ‘Valuate GL A/c. Balances’ GL A/c.: Bank Term LoanPosting à Check on ‘Balance Sheet Preparation Valuation’

Check on ‘Creating Postings’Execute & Document will be Posted.

To See Internal Order Report (KOB1)Internal Order: Bank Term LoanPosting Date: 01.01.2004 to 31.03.2004 & Execute

Execution of Internal Order Settlement (KO88)Accounting > Controlling > Internal Orders > Period End Closing > Single Functions > Settlement > Individual ProcessingOrder Name: Bank Term LoanSettlement Period: 12 Fiscal: 2003 Process Type: AutomaticSelect ‘Test Run’Select ‘Check Transaction Data’ & Execute & See the ReportBack Remover Test Run Execute

To see the Asset Value updation go to Report S_ALR_87011965




Profit Center Accounting (EC-PCA)

Profit Center Accounting evaluates the profit or loss of individual, independent areas within an organization. These areas are responsible for their costs and revenues.

Profit Center Accounting is a statistical accounting component in the SAP system. This means that it takes place on a statistical basis at the same time as true accounting. In addition to costs and revenues, you can display key figures, such as, Return on investment, working capital or cash flow on a profit center.

For more information, see the SAP Library under Financials ® EC-Enterprise Controlling ® EC-Profit Center Accounting

If the company codes use different operational chart of accounts, inter company code controlling can not be performedTo Know Product wise Profitability or to Know Area wise Profitability we will use the Profit Centre Accounting

Profit Centre will be updated based on the Derivation Rules

DERIVATION RULES

Expenditure à through Cost CentersIncome à through Revenue Account Automatic AssignmentsBalance sheet items à Through the Business Area

• A Profit Center can have one or more Cost Centers• In PCA, Postings will be done through DERIVATION RULES• Profit Center and Business Area will be assigned in Cost Center

PCA – Product wise Structure (Sales Accounts Product wise):

Company

Company Code

Business Area

Profit Centre 1 Profit Centre 2

Profit Centre 3

Cost Centre Cost Centre

Cost Centre



Configuration Setting for Profit Centre Accounting

Set Controlling AreaSPRO à Controlling à Profit Center Accounting à Basic Settings à Set Controlling Area

Give the Controlling Area: IBS SaveMaintain Controlling Area SettingsSPRO à Controlling à Profit Center Accounting à Basic Settings à Controlling Area Settings àMaintain Controlling Area Settings

• Give the Controlling: IBS • Give the Standard Hierarchy: IBS_PCA• Select ‘Elimination of Internal Business’• PC Local Currency: ‘20’ Controlling Area Currency• Select ‘Store Transaction Currency’• Valuation View : Legal Valuation

Save

Creation of Dummy Profit Center (KE59)SPRO à Controlling à Profit Center Accounting à Master Data à Profit Center à Create Dummy Profit CenterGive the Dummy Profit Centre: Dummy

Set Control Parameters for Actual DataSPRO à Controlling à Profit Center Accounting à Basic Settings à Controlling Area Settings àActivate Direct Postings à Set Control Parameters for Actual DataSelect New EntriesCheck on ‘Line Item’ and ‘Online Transfer check boxes Save

Company

Company Code

Business Area as Profit Centre Business Area as Profit Centre Business Area as Profit Centre

Cost Centre1

Cost Centre2

Cost Centre3



Maintain Plan VersionsSPRO àControlling à Profit Center Accounting à Basic Settings à Controlling Area Settings àActivate Direct Postings à Plan Versions àMaintain Plan VersionsSelect ‘0’ Plan/Actual VersionIn ‘Settings for PC Accounting’ à Year: 2003

Select ‘Online Transfers’ and ‘Line Items’Exchange Rate Type: ‘B’ Bank Selling

Creation of Profit Center (KE51)Accounting à Controlling à Profit Center Accounting à Master Data à Profit Center à Individual Processing à Create

Give the Profit Centre: IBS_PCA001Select Master Data Button Profit Centre Name: IBS_PCA001Long Text : IBS_PCA001Save

Assignment of Profit Center in Cost Center (KS02)Accounting à Controlling à Cost Center Accounting à Master Data à Cost Center à Individual Processing à Change

Give the cost Centre: IBS_CCA001EnterGive the profit Centre: IBS_PCA001Save

Creation of Sales A/c. and Revenue Cost Element (FS00)‘Sales – Product 1’ Account under Sales Group Field Status Group: G001Environment > Edit Cost Element à Cost Element Category: ‘11’ Revenues

Automatic Account Assignments for Revenue Elements (OKB9)SPRO à Controlling à Profit Center Accounting à Actual Postings à Maintain Automatic Assignment of Revenue ElementsNew Entries Co. Code: XYZ Cost Element: Sales – Product 1 A/c. No.Account Assignment: ‘2’ Business Area Mandatory **Save the record & Double click ‘Details per Business Area/Valuation Area’New Entries Business Area: Give Business AreaProfit Center: Give Profit Center for Product 1

Derivation Rule for Assignment of Balance Sheet items to Profit Center (3KEH)(Where Business Area = Profit Center)SPRO > Controlling > Profit Center Accounting > Actual Postings > Choose Additional Balance Sheet and P&L Accounts > Choose AccountsNew Entries Account From: 100000 To: 299999Default Profit Center: Profit Center for Product 1



Transferring Balance Sheet Items in Real-time

Use

The following balance sheet items can be transferred online in real-time:

Material stocks Assets Work in process Other balance sheet items (transaction-based only)

The system posts balance postings directly to Profit Center Accounting from online postings which directly affect the balances of assets, materials and work in process. If you have line items in Profit center Accounting, the system updates a profit center document for each reference document (e.g. MM or FI document).

Integration

In order to transfer assets online to Profit Center Accounting, you must be using the component Assets Accounting (FI-AA).

In order to transfer material stocks online to Profit Center Accounting, you must be using the component Materials Management (MM).

In order to transfer work in process online to Profit Center Accounting, you must be using results analysis in the component Product Cost Controlling (CO-PC).

Prerequisites

You first need to enter the accounts you want to transfer to Profit Center Accounting in the Customizing transaction for balance sheet and profit and loss accounts.

In addition, you need to run each program once to create the opening balance for materials, work in process and assets from the source application (see Transferring Balance Sheet Items Periodically). For further information, see:

Period Closing Activities for Material Stocks

Period Closing Activities for Work in Process

Period Closing Activities for Assets

If you have also created asset accounts as statistical cost elements (type 90) to update investment orders, you must still treat these the same way as normal balance sheet accounts. Updating in realtime in Profit Center Accounting is only possible if you have entered the accounts as additional balance sheet accounts and P&L accounts in Customizing.



You must post the opening balance for other balance sheet items to transfer online by creating the documents manually, as transfer reports cannot be carried out here. You also have to assign a default profit center to each of the accounts in question in Customizing for Profit center Accounting. When posting in FI, however, you can set a different profit center manually. You can also define derivation rules for finding the profit center, where no profit center has been set for a posting. See Derivation Rules for Finding the Profit Center in the Implementation Guide (IMG) for Profit Center Accounting. You can find more information on derivation strategy in the documentation for Profitability Analysis (CO-PA) under.

Characteristic Derivation

When you assign down payments to a work breakdown structure element, the system finds the profit center to which it is assigned. It can therefore make sense to transfer down payments online.

Features

After you have created the opening balance, the system always transfers the difference between the new balance and the previous balance. You can find the current balance from the opening balance and the changes transferred online.

At the end of the year, you need to carry forward the balances for the balance sheet items that were posted in realtime to Profit Center Accounting.

The system assigns work in process to profit centers by taking the assignment of open production order, projects, sales orders etc. (see Profit Center Assignments ).

The system assigns assets to profit centers indirectly, via assigned internal orders or cost centers (see Assigning Assets). The program transfers the acquisition and product costs, as well as cumulated value adjustments.

The system assigns material stocks by taking the assignment in the material master record, in the plant segment (see Assigning Materials).

If you run a manual transfer, the system overwrites any corresponding data that was already transferred to Profit Center Accounting. For example, if certain material stocks have already been transferred in real-time and you want to run a periodic transfer for the same period, the system first deletes the data that was already transferred. When this happens, you lose the information on the inventory posting documents for each transaction. The periodic transfer programs only create one posting per object that contains the balance from the previous period (or the difference to this balance for work in process).

Derivation Rule for Finding the Profit Center

SPRO à Controlling à Profit Center Accounting à Actual Postings à Choose Additional Balance Sheet and P&L Accounts à Derivation Rule for Finding the Profit Center à from Menu ‘Strategy à Display Change

Select ‘Create Step’ ButtonDerivation Rule: Business Area to Profit Center AssignmentUnder ‘Source’, Select Drop Down Menu (Under RACCT)Select ‘GSBER’ Business Area & Save



Select ‘Maintain Rule Values’ ButtonSelect ‘On/Off’ Button (Source Fields On/Off) Ctrl+F4From Account To Account Business Area Profit Center100000 299999 HYD Product 1100000 299999 MUM Product 2

Define Number Ranges for Local Documents (GB02)

SPRO à Controlling à Profit Center Accounting à Actual Postings à Basic Settings Actual à Define Number Ranges for Local DocumentsSelect ‘Maintain Groups’ ButtonCheck on ‘Actual Doc from Direct Posting with GB01’Group > Insert Co. Code: XYZ EnterText: Actual Documents for XYZYear: 2003 From Number: 1 To Number: 100000 Enter & Save

The same way Check on ‘Planned Doc from Direct Posting with GB01’Interval àMaintain Co. Code: XYZ Select ‘Interval’ ButtonYear: 2003 From Number: 100001 To Number: 200000 Enter & Save

Planning of P&L items for Profit Centers (7KE1)Accounting à Controlling à Profit Center Accounting à Planning à Cost/Revenues à ChangeVersion: ‘0’ Plan/Actual VersionPeriod à From: Month To: Month Fiscal: 2003Profit Center: Product 1Account Numbers: 100000 To 499999Entry à Select ‘Form Based’Select ‘Overview Screen’ & Plan as desiredSavePlanning Balance Sheet Accounts (7KE3)Accounting à Controlling à Profit Center Accounting à Planning à Balance Sheet Accounts àChangePlan as desired in the above way

Profit Center Plan/Actual/Variance P&L items (S_ALR_87013326)Accounting à Controlling à Profit Center Accounting à Information System à Reports for Profit Center Accounting à Interactive Reporting à Profit Center Group: Plan/Actual/VarianceGive Period, Profit Center & ExecuteReport can be viewed From Reporting Screen use ‘Call up Report’ option for other Reports & Vouchers.

Profit Center Plan/Actual/Variance Balance Sheet items (S_ALR_87013336)Accounting à Controlling à Profit Center Accountingà Information System à Reports for Profit Center Accounting à Interactive Reporting à Profit Center Group: Balance Sheet Accounts: Plan/Actual

• Give Period, Profit Center & ExecuteIf you want to see more reports in Profit Centre accounting you find in à Information systems àReports for profit Centre Accounting




• To know the Profit – Product wise, Customer wise, Sales Org. wise and Plant wise, Hence it is called a ‘Data Cube’

• Data will flow from MM, PP, SD and FI• ‘Operating Concern’ is to be created• The structure we follow is ‘Co. Code = Controlling Area = Operating Concern’

In Operating Concern:Profitability Segment (Data Structure) à Characteristics & Value FieldsCharacteristics: Product, Customer, Sales Organization, PlantValue Fields: Sales, Cost of Goods Manufactured, Freight, Quantity, Price

In Profitability Analysis, sales and costs are analyzed by profitability segment. Profitability segments are made up of combinations of characteristic values. You can use the transactions for this role to maintain characteristic values and to arrange the characteristic values for a given characteristic in a hierarchical relationship. Furthermore, you can use these transactions to specify derivation rules, which enable you to determine characteristic values using other characteristics.

Activities in Profitability Analysis

• Maintaining characteristic values and characteristics hierarchies • Maintaining derivation rules

Profitability Analysis (CO-PA)

An object within Profitability Analysis to which costs and revenues are assigned.

A profitability segment corresponds to a market segment. You can calculate the profitability of a profitability segment by comparing its sales revenues against its costs.

The application CO-PA lets you analyze the profitability of segments of your market - structured according to products, customers, orders, and summarizations of these and other characteristics - and organizational units such as company codes or business areas. The aim is to provide your sales, marketing, planning, and management organizations with decision-support from a market-oriented viewpoint.

A profitability segment in an operating concern is defined by a combination of characteristic values. Characteristics can be concepts already available in the SAP System (customer, product, sales organization, and so on), or you can define your own concepts (such as "order size class").

Example

Profitability segment 1: Product "Prod-1132"/ Customer "100267"

Profitability segment 2: Industry "Chemicals"/ Country "USA"/ Product group "Laboratory instruments"

How the profitability Analysis will update



Steps:a) Creation of Operating Concernb) Assign Controlling Area to Operating Concernc) Create Number Ranges for actual postings in Profitability Analysis d) Activation of Profitability Analysis e) Mapping of SD Condition types to COPA Value Fieldsf) Maintain PA Transfer Structure for Direct Postingsg) Change Field Status Group to make Profitability Segment mandatoryh) Define Form for Profitability Reportsi) Create Profitability Reportj) Execution of Profitability Report

Operating Concern

An operating concern represents an organizational unit in your company for which the sales market has a uniform structure. It is the valuation level for Profitability Analysis (CO-PA).

The operating Concern Consist of Characteristics and Value fields

Characteristics

Operating Concern

Characteristics-(for Accounting based Profitability Analysis)

Value fields – Costing Based Profitability Analysis



Characteristics are the criteria in Profitability Analysis (CO-PA) according to which you can analyze your operating results and perform differentiated sales and profit planning. The combination of the values for the characteristics in an operating concern is called a Profitability Segment. Value

Value Fields

Value fields are only required in costing-based Profitability Analysis. These are the fields that contain the currency amounts and quantities that you want to analyze in CO-PA. They represent the structure of your costs and revenues

There are two types of value fields:

• Value fields that contain amounts in currencies are also referred to as "amount fields". All amount fields in a single line item use the same currency.

• Value fields that contain quantities are referred to as "quantity fields".

Each quantity field is assigned a field containing a unit of measure. Consequently, each quantity field in a line item can use a different unit.

Value fields can be categorized according to how and when they are defined:

• Predefined value fields

Value fields that are used frequently are predefined in the standard R/3 System. These include fields such as revenue, sales quantity, incoming freight, outgoing freight, and others. You can select those predefined value fields that you wish to transfer into your own operating concern.

• User-defined value fields

In addition to the predefined value fields, you can also define your own value fields. You define these in the field catalog— independent of any client or operating concern — and can later add them to your operating concerns. You create value fields in Customizing under Structures ® Operating Concern ® Maintain value fields.



Profitability Analysis (CO-PA)

An object within Profitability Analysis to which costs and revenues are assigned.

A profitability segment corresponds to a market segment. You can calculate the profitability of a profitability segment by comparing its sales revenues against its costs.

A profitability segment in an operating concern is defined by a combination of characteristic values. Characteristics can be concepts already available in the SAP System (customer, product, sales organization, and so on), or you can define your own concepts (such as "order size class").

Costing-Based Profitability Analysis

This type of Profitability Analysis is primarily designed to let you analyze profit quickly for the purpose of sales management. Its main features are, firstly, the use of value fields to group cost and revenue elements, and, secondly, automatic calculation of anticipated or accrual data (valuation). The advantage of this method is that data is always up-to-date and therefore provides an effective instrument for controlling sales.

Account-Based Profitability Analysis

This type of Profitability Analysis enables you to reconcile cost and financial accounting at any time using accounts. In contrast to costing-based Profitability Analysis, this type uses cost and revenue elements, which gives you a unified structure for all of accounting.

The system posts all revenues and costs to both Financial Accounting and Profitability Analysis at the same time and using the same valuation method. This means that the cost of sales is posted to Profitability Analysis at the point of goods issue

Create Operating Concern (KEA0)SPRO à Controlling à Profitability Analysis à Structures à Define Operating Concern à Maintain Operating ConcernOperating Concern: IBSO (Should be of 4 digits) Operating Concern for IBSOSelect ‘Costing Based’ & ‘Account Based’Select Attributes Tab à

Give the Operating Concern Currency: INRSelect Co. Code CurrencySelect Operating Concern Currency, Profit Center ValuationSelect Co. Code Currency, Profit Center Valuation

Fiscal Year Variant: V3 & Save

In Data Structure Tab à Create Select Characteristic and select the Fields KUNWE (Ship to Party) and MATKL (Material Group)Attach In Value Fields Tab àSelect & Attach the Fields VV010, VV140Save & Activate the Data Structure (operating Concern)



Assign Controlling Area to Operating ConcernSPRO à Enterprise Structure à Assignment à Controlling à Assign Controlling Area to Operating Concern

Select Position Button Give the Controlling Area: IBS (Controlling Area for IBS)Assign the Operating Concern IBS Save

Creation of Number Ranges for Actual Postings in PASPRO à Controlling à Profitability Analysis à Flows of Actual Values à Initial Steps à Define Number Ranges for Actual PostingsGive the Operating Concern IBSOSelect Groups Button Select Direct Posting from FI & MM Check BoxFrom Menu à Intervals àMaintain Give the Number Ranges from 000001 to 200000Save

Activation of Profitability Analysis (KEKE)SPRO à Controlling à Profitability Analysis à Flows of Actual Valuesà Activate Profitability AnalysisGo to Controlling Area IBS and give Active Status: 4 (Component Active for Both Types of Profitability Analysis, Costing Based & Account Based)Whether the profitability Analysis is Active or not we e verify in T-Code: - OKKP

Mapping of SD Condition Types to COPA Value FieldsFor Assigning Value Fields:SPRO à Controlling à Profitability Analysis à Flows of Actual Values à Transfer Billing Documents à Assign Value FieldsDouble click ‘Maintain Assignment of SD Condition Types to COPA Value Fields’Operating Concern: IBSO (Operating Concern IDES world wide) & EnterWatch the Value Fields and Assign the same Fields in Your Company Code in Real Time.

Give the Condition Types and Value Fields à and Select the Transfer ( +/-) Check Boxes Save



For Assigning Qty Fields:SPRO -- Controlling > Profitability Analysis > Flows of Actual Values > Transfer Billing Documents > Assign Quantity FieldsWatch the Structure and Copy in your Company Code in Real Time.

Direct Postings from MM/FI (KEI2)SPRO > Controlling > PA > Flows of Actual Values > Direct Postings from FI/MM > Maintain PA Transfer Structure for Direct PostingsSelect Structure FI & Double click ‘Assignment Lines’Select ‘5 – Sales’ & Double click ‘Source’Cost Element From Account: 300000 To: 399999

Double click Value Fields & Select New EntriesQuantity/Value Field: Value Field: VV010Fixed/Variable: ‘2’ Variable amounts & Save & Back Arrow

Select ’20 – RM/Service Material’ & Double click ‘Source’Element from: 400000 To: 499999

Double click ‘Value Fields’ & New EntriesGive Value Field, 2, VV140 & Save

Change Field Status Group to make Profitability Segment mandatorySPRO à Financial Accounting à FAGS à Document à Line Item à Controls à Maintain Field Status VariantFor G001 & G004 in Additional Account Assignments make ‘Profitability Segment’ Required Entry.

Profitability Analysis Report

Accounting à Financial Accounting à Controlling à Profitability Analysis àInformation system àExecute the Report

Select the Report and Execute

Period-End Closing in Profitability Analysis

Technical name: SAP_CO_PA_PEREND

Tasks

Different transactions are required in order to perform period-end closing. These transactions are linked by a logical dependency (for example, a logical dependency exists between "Transferring Cost Center



Costs" and "Building Summarization Levels"). You can use the Schedule Manager to monitor the status of period-end closing and the order in which it occurs.

Activities in Profitability Analysis

• Transferring cost center costs using assessment or indirect activity allocation • Periodic adjustment by means of revaluation and top-down distribution • Building summarization levels • Executing reports in background processing • Use of the Schedule Manager

Transaction Posting (F-02)

Report PainterReports: Creation of Form

User-Defined Reports

Purpose

The small number of standard reports cannot, of course, cover all your reporting needs in Profit Center Accounting. They are intended to be a base which you can build upon to create a complete set of reports using the Report Writer, the Report Painter, and Drilldown Reporting.

Features

The tools for defining reports in Profit Center Accounting are the Report Painter and Drildown Reporting (for the difference between these two tools, see Drilldown Reporting vs Report Painter Reports).

For more information, see

Defining your own Reports with the Report Painter.

Defining your own Reports with Drilldown Reporting.

Drilldown Reporting or Report Painter Reports?

Drilldown reporting is useful for flexible online analysis of profit center report data.

You can either create a report ad hoc or using a form. In a form, you use a graphical report structure as the basis for your report. The system displays the rows and columns exactly as they will appear in the finished report. From a technical viewpoint, the same tool is used for this purpose as for the definition of Report Painter reports (see below).

In a drilldown report, you can navigate freely within a data cube. This means that you can change the drilldown characteristics and set individual values for characteristics.



You can find detailed information on how to use this tool in the corresponding documentation in CA -

Cross-Application Components under CA – Drilldown Reporting.

For specific information on Profit Center Accounting, see

Standard Drilldown Reporting in Profit Center Accounting User-defined Reports with Drilldown Reporting.

Drilldown reporting is also used in other components, such as CO-PA and PS.

It is possible to use the PC application inSight to present drilldown reports. For further information, see

Connection to insight for SAP R/3.

SAP Interview Questions

Enterprise Structure

1) What are the various organizational assignments to a company code?

Company Code is a legal entity for which financial statements like Profit and Loss and Balance Sheets are generated. Plants are assigned to the company code, Purchasing organization is assigned to the company code, and Sales organization is assigned to the company code.

2) What is the relation between a Controlling Areas and a Company codes?

A Controlling area can have the following 2 type of relationship with a Company code a. Single Company code relation b. Cross Company code relation

This means that one single controlling area can be assigned to several different company codes. Controlling Area can have a one is to one relationship or a one is to many relationship with different company codes.

Controlling Area is the umbrella under which all controlling activities of Cost Center Accounting, Product Costing, Profit Center and Profitability Analysis are stored.

In a similar way Company Codes is the umbrella for Finance activities.

3) How many Chart of Accounts can a Company code have?

A single Company code can have only one Chart of Account assigned to it. The Chart of Accounts is nothing but the list of General Ledger Accounts.

4) What are the options in SAP when it comes to Fiscal years?

Fiscal year is nothing but the way financial data is stored in the system. You have 12 periods in SAP and also four special periods. These periods are stored in what is called the fiscal year variant.



There are two types of Fiscal Year Variant • Calender Year – Jan-Dec, April -March • Year Dependent Fiscal Year.

5) What is a year dependent fiscal year variant?

In a year dependent fiscal year variant the number of days in a month are not as per the

calendar month. Let us take an example:- For the year 2005 the period January ends on 29th

,

Feb ends on 27th

, March ends on 29. For the year 2006 January ends on 30th

, Feb ends on 26th

,

March ends on 30th

. This is applicable to many countries especially USA. Ever year this fiscal year variant needs to be configured.

6) How does posting happen in MM (Materials Management) during special periods?

There is no posting which happens from MM in special periods. Special periods are only applicable for the FI module. They are required for making any additional posting such as closing entries, provisions. Which happen during quarter end or year end?

7) How many currencies can be configured for a company code?

A company code can have 3 currencies in total. One which is called the local currency (ie company code currency) and 2 parallel currencies can be configured.

When you do that the system has the flexibility to report in the different currencies.

8) Do you require configuring additional ledger for parallel currencies?

In case 2 currencies are configured. (Company code currency and a parallel currency) there is no need for an additional ledger. In case the third parallel currency is configured and is different than the second currency type, you need to configure additional ledger.

9) If there are two company codes with different chart of accounts how can you consolidate their activities?

In this case you either need to write an ABAP programme or you need to implement the Special Consolidation Module of SAP. If both the company codes use the same chart of accounts then standard SAP reports give you the consolidate figure.

FI-GL



10) Give some examples of GL accounts that should be posted automatically through the system and how is this defined in the system.

Stock and Consumption accounts are instances of GL accounts that should be automatically posted to. In the GL account master record, a check box exists wherein the automatic posting option is selected called “Post Automatically Only”

11) What is a Account group and where all is it used?

An Account group controls the data that needs to be entered at the time of creation of a master record. Account groups exist for the definition of a GL account, Vendor and Customer master. It basically controls the fields which pop up during master data creation.

12) What is a field status group?

Field status groups control the fields which come up when the user does the transactions. The options available is one can have the fields only for display or one can suppress it or make it mandatory. So there are three options basically. The field status group is stored in the FI GL Master

13) What is the purpose of a “Document type” in SAP?

A Document type is specified at the Header level during transaction entry and serves the following purposes:

It defines the Number range for documents It controls the type of accounts that can be posted to eg Assets, Vendor, Customer, Normal GL account Document type to be used for reversal of entries

Whether it can be used only for Batch input sessions

14) What is a Financial Statement Version?

An FSV (Financial Statement Version) is a reporting tool and can be used to depict the manner in which the final accounts like Profit and Loss Account and Balance Sheet needs to be extracted from SAP. It is freely definable and multiple FSV's can be defined for generating the output for various external agencies like Banks and other statutory authorities.

15) How are input and output taxes taken care of in SAP?

A tax procedure is defined for each country and tax codes are defined within this. There is flexibility to either expense out the Tax amounts or capitalize the same to Stocks.

16) What are Validations and Substitutions?



Validations/Substitutions in SAP are defined for each functional area eg Assets, Controlling etc at the following levels 1. Document level 2. Line item level These need to be specifically activated and setting them up are complex and done only when it is really needed. Often help of the technical team is taken to do that.

17) Is it possible to maintain plant wise different GL codes?

The valuation group code should be activated. The valuation grouping code is maintained per plant and is configured in the MM module. Account codes should be maintained per valuation grouping code after doing this configuration.

18) Is Business area at company code Level?

No. Business area is at client level. Which means other company codes can also post to the same business area.

19) What are the different scenarios under which a Business Area or a Profit Center may be defined?

This question is usually very disputable. But both Business Areas and Profit centers are created for internal reporting. Each has its own pros and cons but many companies nowadays go for Profit center as there is a feeling that business area enhancements would not be supported by SAP in future versions.

There are typical month end procedures which need to be executed for both of them and many times reconciliation might become a big issue. A typical challenge in both of them is in cases where you do not know the Business Area or Profit Center of the transaction at the time of posting.

20) What are the problems faced when a Business area is configured?

The problem of splitting of account balance is more pertinent in case of tax accounts.

21) Is it possible to default certain values for particular fields? For e.g. company code.

Yes it is possible to default for certain fields where a parameter id is present. Go to the input field to which you want to make defaults. Press F1, and then click technical info push button.This opens a window that displays the corresponding parameter id (if one has been allocated to the field) in the field data section. Enter this parameter id using the following path on SAP Easy access screen System � User profile � Own data. Click on parameter tab. Enter the parameter id code and enter the value you require to default. Save the user settings.



22) Which is the default exchange rate type which is picked up for all SAP transactions?

The default exchange rate type picked up for all SAP transactions is M (average rate)

23) Is it possible to configure the system to pick up a different exchange rate type for a particular transaction?

Yes it is possible. In the document type definition of GL, you need to attach a different exchange rate type.

24) What are the Customizing prerequisites for document clearing?

Account must be managed on the open item management. This tick is there in the General Ledger Master Record called Open Item Management. It helps you to manage your accounts in terms of cleared and uncleared items. A typical example would be GR/IR Account in SAP(Goods Received/Invoice Received Account)

25) Explain the importance of the GR/IR clearing account.

GR/IR is an interim account. In legacy system if the goods are received and the invoice is not received the provision is made, in SAP at the Goods receipt It passes the accounting entry debiting the Inventory and crediting the GR/IR Account .Subsequently when an invoice is recd this GR/IR account is debited and the Vendor account is credited. That way till the time that the invoice is not received the GR/Ir is shown as uncleared items.

26) How many numbers of line items in one single entry you can have?

No of line items in one document you can accommodate is 999 lines.

27) In Assignment Field in the Document you get some reference, which comes from where?

This is on the basis of Sort key entered in the master.

28) How do you maintain the number range in Production environment? By creating in Production or by transport?

Number range is to be created in the production client. You can transport it also by way of request but creating in the production client is more advisable

29) In customizing “company code productive “means what? What it denotes?



Once the company code is live this check box helps prevent deletion of many programmes accidentally. This check box is activated just before go live.

Accounts Receivable and Accounts Payable

30) At what level are the customer and vendor code stored in SAP?

The customer and vendor code are at the client level. That means any company code can use the customer and vendor code by extending the company code view.

31) How are Vendor Invoice payments made?

Vendor payments can be made in the following manner: Manual payments without the use of any output medium like cheques etc Automatic Payment program through cheques, Wire transfers, DME etc.

32) How do you configure the automatic payment program?

The following are the steps for configuring the automatic payment program:-Step 1 Set up the following:

Co. code for Payment transaction Define sending and paying company code. Tolerance days for payable Minimum % for cash discount Maximum cash discount Special GL transactions to be paid Step 2 Set up the following:

Paying company code for payment transaction Minimum amount for outgoing payment No exchange rate diff Separate payment for each ref

Bill/exch payment Form for payment advice Step 3 Set up the following:

Payment method per country Whether Outgoing payment Check or bank transfer or B/E Whether allowed for personnel payment Required master data Doc types Payment medium programs Currencies allowed Step 4 Set up the following:



Payment method per company code for payment transactions Set up per payment method and co. code The minimum and maximum amount. Whether payment per due day

Bank optimization by bank group or by postal code or no optimization Whether foreign currency allowed Customer/Vendor bank abroad allowed Attach the payment form check Whether payment advice required Step 5 Set up the following:

Bank Determination for Payment Transactions Rank the house banks as per the following Payment method, currency and give them ranking nos Set up house bank sub account (GL code) Available amounts for each bank House bank, account id, currency, available amount Value date specification

33) Where do you attach the check payment form?

It is attached to the payment method per company code.

Payment terms for customer master can be maintained at two places i.e. accounting view and the sales view.

34) Which is the payment term which actually gets defaulted in transaction?

The payment term in the accounting view of the customer master comes into picture if the transaction originates from the FI module. If an FI invoice is posted (FB70) to the customer, then the payment terms is defaulted from the accounting view of the customer master.

The payment term in the sales view of the customer master comes into picture if the transaction originates from the SD module. A sales order is created in the SD module. The payment terms are defaulted in the sales order from the sales view of the customer master.

Payment terms for vendor master can be maintained at two places i.e. accounting view and the purchasing view.

35) Which is the payment term which actually gets defaulted in transaction?

The payment term in the accounting view of the vendor master comes into picture if the transaction originates from the FI module. If an FI invoice is posted (FB60) to the Vendor, then the payment terms is defaulted from the accounting view of the vendor master.



The payment term in the purchasing view of the vendor master comes into picture if the transaction originates from the MM module. A purchase order is created in the MM module. The payment terms are defaulted in the purchase order from the purchasing view of the vendor master.

36) Explain the entire process of Invoice verification from GR to Invoice verification in SAP with accounting entries?

A goods receipt in SAP for purchased material is prepared referring a purchase order.

When goods receipt is posted in SAP the accounting entry passed is:-

Inventory account Debit GR/IR account credit

A GR/IR (which is Goods receipt/Invoice receipt) is a provision account which provides for the liability for the purchase. The rates for the valuation of the material are picked up from the purchase order.

When the invoice is booked in the system through Logistics invoice verification the entry passed is as follows:-

GR/IR account debit Vendor credit

37) How are Tolerances for Invoice verification defined?

The following are instances of tolerances that can be defined for Logistic Invoice Verification. c. Small Differences d. Moving Average Price variances e. Quantity variances f. Price variances

Based on the client requirement, the transaction can be “Blocked” or Posted with a “Warning” in the event of the Tolerances being exceeded.

Tolerances are nothing but the differences between invoice amount and payment amount or differences between goods receipt amount and invoice amount which is acceptable to the client.

38) Can we change the reco account in the vendor master? If so, and how? What is the impact on the old balance?



Reconciliation account can be changed in the vendor master provided that authority to change has been configured. Also any change you make to the reconciliation account is prospective and not retrospective. The old items and balances do not reflect the new account only the new transactions reflect the account.

Bank Accounting:

39) How is Bank Reconciliation handled in SAP?

Initially the payment made to a Vendor is posted to an interim bank clearing account. Subsequently, while performing reconciliation, an entry is posted to the Main Bank account. You can do bank reconciliation either manually or electronically.

Fixed Assets

40) What are the organizational assignments in asset accounting?

Chart of depreciation is the highest node in Asset Accounting and this is assigned to the company code. Under the Chart of depreciation all the depreciation calculations are stored

41) Explain the importance of asset classes. What asset classes are there?

The asset class is the main criterion for classifying assets. Every asset must be assigned to only one asset class. Examples of asset class are Plant& Machinery, Furniture Fixtures, and Computers etc. The asset class also contains the Gl accounts which are debited when any asset is procured. It also contains the gl accounts for depreciation calculation, scrapping etc

Whenever you create an asset master you need to mention the asset class for which you are creating the required asset. In this manner whenever any asset transaction happens the gl accounts attached to the asset class is automatically picked up and the entry passed.

You can also specify certain control parameters and default values for depreciation calculation and other master data in each asset class.

42) How is depreciation keys defined?

The specifications and parameters that the system requires to calculate depreciation amounts are entered in Calculation methods. Calculation methods replace the internal calculation key of the depreciation key. Depreciation keys are defaulted in Asset Master from the asset class.

43) What steps do you have to take into account to ensure that integration into the general ledger for the depreciation posting run works?



For each depreciation area and company code, specify the following:

� the frequency of posting depreciation(monthly, quarterly etc) � CO account assignment (cost center) � For each company code you must define a document type for automatic depreciation

posting only: This document type requires its own external number range. � You also need to specify the accounts for posting. (Account determination) � To ensure consistency between Asset Accounting and Financial Accounting, you must

process the batch input session created by the posting report.

If you fail to process the batch input session, an error message will appear at the next posting run. The depreciation calculation is a month end process which is run in batches and then once the batch input is run the system posts the accounting entries into Finance.

44) How you change fiscal year in Asset Accounting?

� the fiscal year change program opens new annual value fields for each asset. I e next year � The earliest you can start this program is in the last posting period of the current year. � You have to run the fiscal year change program for your whole company code. � You can only process a fiscal year change in a subsequent year if the previous year has

already been closed for business.

Take care not to confuse the fiscal year change program with year-end closing for accounting purposes. This fiscal year change is needed only in Asset Accounting for various technical reasons.

45) Is it possible to have depreciation calculated to the day?

Yes it is possible. You need to switch on the indicator Dep to the day in the depreciation key configuration.

46) Is it possible to configure that no capitalization be posted in the subsequent years?

Yes it is possible. You need to set it in the depreciation key configuration.

47) How are Capital WIP and Assets accounted for in SAP?

Capital WIP is referred to as Assets under Construction in SAP and are represented by a specific Asset class. Usually depreciation is not charged on Capital WIP. All costs incurred on building a capital asset can be booked to an Internal Order and through the settlement procedure can be posted onto an Asset under Construction. Subsequently on the actual readiness of the asset for commercial production, the Asset under Construction gets capitalized to an actual asset.



48) What is the purpose of defining internal orders?

Internal Orders are basically used for tracking of costs, which are proposed to be incurred over on a short term basis and time tracking is not of much essence.Eg an Advertisement campaign. Sales Promotion and Exhibition expenses etc.

FI-MM-SD Integration

49) How do you go about setting the FI MM account determination?

FI MM settings are maintained in transaction code OBYC. Within these there are various transaction keys to be maintained like BSX, WRX, GBB, PRD etc. In each of these transaction keys you specify the GL account which gets automatically passed at the time of entry. Few examples could be: BSX- Stands for Inventory Posting Debit

GBB-Stands for Goods Issue/Scrapping/delivery of goods etc PRD- Stands for Price Differences.

50) At what level are the FI-MM, FI-SD account determination settings ?

They are at the chart of accounts level.

51) What are the additional settings required while maintaining or creating the GL codes for Inventory accounts?

In the Inventory GL accounts (Balance sheet) you should switch on the ‘Post automatically only’ tick. It is also advisable to maintain the aforesaid setting for all FI-MM accounts and FI-SD accounts. This helps in preserving the sanctity of those accounts and prevents from having any difference between FI and MM, FI and SD.

52) How do you configure FI-SD account determination?

The FI-SD account determination happens through an access sequence. The system goes about finding accounts from more specific criteria to less specific criteria.

Thus first it will access and look for the combination of Customer accounts assignment grp/ Material account assignment grp/ Account key. If it does not find account for the first combination it will look for Customer account assignment grp and account key combination. Further if it does not find accounts for the first 2 criteria’s then it will Look for Material account assignment grp/Account key. If it does not find accounts for the all earlier criteria’s then finally it will look for Account key and assign the GL code.



Thus posting of Sales Invoices into FI are affected on the basis of a combination of Sales organization, Account type, or Customer and Material Account assignment groups and following are the options available.

a. Customer AAG/Material AAG/Account type b. Material AAG/Account type c. Customer AAG/Account type

For each of this option you can define a Gl account. Thus the system uses this gl account to automatically pass the entries.

53) What is Valuation and Account assignment in SAP?

This is actually the link between Materials Management and Finance. The valuation in SAP can be at the plant level or the company code level. If you define valuation at the plant level then you can have different prices for the same material in the various plants. If you keep it at the company code level you can have only price. Across all plants. Valuation also involves the Price Control .Each material is assigned to a material type in Materials Management and every material is valuated either in Moving Average Price or Standard Price in SAP. These are the two types of price control available.

54) What is Valuation Class?

The Valuation Class in the Accounting 1 View in Material Master is the main link between Material Master and Finance. This Valuation Class along with the combination of the transaction keys (BSX, WRX, GBB, and PRD) defined above determines the GL account during posting. We can group together different materials with similar properties by valuation class. Eg Raw material, Finsihed Goods, Semi Finished

We can define the following assignments in customizing:

All materials with same material type are assigned to just one valuation class. Different materials with the same material type can be assigned to different valuation classes. Materials with different material types are assigned to a single valuation class.

55) Can we change the valuation class in the material master once it is assigned?

Once a material is assigned to a valuation class in the material master record, we can change it only if the stocks for that material are nil. If the stock exists for that material, then we cannot change the valuation class. In such a case, if the stock exists, we have to transfer the stocks or issue the stocks and make the stock nil for the specific valuation class. Then only we will be able to change the valuation class.



If the material is assigned a moving average price in the material master and the stock of such material is issued, then does the moving average price change in the material master?

The moving average price in the case of goods issue remains unchanged. Goods issue is always valuated at the current moving average price. Consequently, a goods issue reduces the total quantity and the total value in relation to the price and the moving price remains unchanged.

If the answer to the above question is ‘Yes’, then list the scenario in which the moving average price of the material in the material master changes when the goods are issued.

The moving average price in the material master changes in the scenario of Split Valuation. If the material is subject to split valuation, the material is managed as Several partial stocks and each partial stock is valuated separately.

In split valuation, the material with valuation header record will have ‘v’ moving average price. This is where the individual stocks of a material are managed cumulatively .Here two valuation types are created, one valuation type can have ‘v’ (MAP) and the other valuation type can have ‘s’(standard price).

In this case, whenever the goods are issued from the respective valuation types, always the MAP for the valuation header changes.

56) What is the accounting entry in the financial books of accounts when the goods are received in unrestricted use stock? Also mention the settings to be done in the ‘Automatic postings’ in SAP for the specific G/L accounts.

On receipt of the goods in unrestricted-use stock, the Inventory account is debited and the GR/IR account gets credited. In the customization, in the automatic postings, the Inventory G/L account is assigned to the Transaction event key BSX and the GR/IR account is assigned to the Transaction event key WRX.

If a material has no material code in SAP, can you default the G/L account in Purchase order or it has to be manually entered.

If a material has no material code in SAP, we can still, default the G/L account with the help of material groups. We can assign the valuation class to a material group and then in FI-automatic posting, we can assign the relevant G/L account in the Transaction event key. The assignment of a valuation class to a material group enables the system to determine different G/L accounts for the individual material groups.

57) What is the procedure in SAP for initial stock uploading? Mention the accounting entries also.



Initial stock uploading in SAP from the legacy system is done with inventory movement type 561. Material valuated at standard price: For a material valuated at standard price, the initial entry of inventory data is valuated on the basis

Of standard price. If you enter an alternative value at the time of 561, then the system posts the difference to the price difference account. Material valuated at moving average price: The initial entry of inventory data is valuated as follows: If you enter a value when entering initial data, the quantity entered is valuated at this price. If you do not enter a value when entering initial data, then the quantity entered is valuated at the MAP present in the material master.

The accounting entries are: Inventory account is debited and Inventory Historical upload account is credited.

Logistics Invoice Verification

58) Can you assign multiple G/L accounts in the Purchase order for the same line item?

Yes, we can assign multiple G/L accounts in the Purchase order for the same line item. The costs can be allocated on a % or quantity basis. If the partial goods receipt and partial invoice receipt has taken place, then the partial invoice amount can be distributed proportionally, i.e. evenly among the account assigned items of a Purchase order or the partial invoice amount can be distributed on a progressive fill-up basis, i.e. the invoiced amount is allocated to the individual account assignment items one after the other.

59) What is Credit memo and subsequent debit in Logistics Invoice verification?

The term credit memo refers to the credit memo from the vendor. Therefore posting a credit memo always leads to a debit posting on the vendor account. Credit memos are used if the quantity invoiced is higher than the quantity received or if part of the quantity was returned. Accounting entries are: vendor account is debited and GR/IR account is credited.

Subsequent debit: If a transaction has already been invoiced and additional costs are invoiced later, then subsequent debit is necessary. In this case you can debit the material with additional costs, i.e. GR/IR account debit and Vendor account credit. When entering the Subsequent debit, if there is no sufficient stock coverage, only the portion for the available stock gets posted to the stock account and Rest is posted to the price difference account.

60) What do you mean by Invoice parking, Invoice saving and Invoice confirmation?



Invoice parking: The functionality wherein we can save the LIV (Logistics Invoice Verification) document as Parked, so that the document gets created in SAP, but its status is parked.

The advantage is wherein we just want to create this document in database and we are not concerned whether the entries are balanced or not, correct/ incorrect. The accounting document is not created when the invoice is in the Parked mode.

We can later on rectify the Parked invoice.

Invoice saving: This is also called Invoice processing or Invoice posting. The accounting document gets created when the invoice is posted in SAP.

Invoice confirmation: There is no terminology in SAP as Invoice confirmation.

61) What are planned delivery costs and unplanned delivery costs? What is the basis on which the apportionment is done?

Planned delivery costs: are entered at the time of Purchase order. At goods receipt, a provision is posted to the freight or customs clearing account.

e.g. FRE is the account key for freight condition, hence the system can post the freight charges to the relevant freight revenue account and FR3 is the account key for Customs duty, hence the system can post the customs duty to the relevant G/L account.

These account keys are assigned to the specific condition types in the MM Pricing schema. In terms of Invoice verification: If the freight vendor and the material vendor is the same: then we can choose the option: Goods service items + planned delivery costs. If the freight vendor is different from the material vendor: then for crediting only the delivery costs, we can choose the option: Planned delivery costs. Unplanned delivery costs: are the costs which are not specified in the Purchase order and are only entered when you enter the invoice.

Unplanned delivery costs are either uniformly distributed among the items or posted to a separate G/L account.

For a material subjected to Moving average price, the unplanned delivery costs are posted to the stock account provided sufficient stock coverage exists.

For a material subjected to Standard price, the unplanned delivery costs are posted to the Price difference account.

FI Month End Closing Activities 62) Define the Month End Closing Activities in Finance

1. Recurring Documents. a) Create Recurring documents b) Create Batch Input for Posting Recurring Documents



c) Run the Batch Input Session 2. Posting Accruals or Provisions entries at month end

3. Managing the GR/IR Account-Run the GR/Ir Automatic Clearing

4. Foreign Currency Open Item Revaluation-Revalue Open Items in AR.AP

5. Maintain Exchange Rates

6. Run Balance Sheets –Run Financial Statement Version

7. Reclassify Payables and Receivables if necessary

8. Run the Depreciation Calculation

9. Fiscal Year Change of Asset Accounting if it is year end

10. Run the Bank Reconciliation

11. Open Next Accounting Period

What is the function of Account Groups weather be in GL or AP or AR?

a) Account group controls interval of accounts under group. Field status of company code view in gl master creation (fs00)

(2) What is the fundamental behind Field Status Groups - where all assignments - what for used - master data level assignments

a) FSG is bundle of predefined requirements at the time of document posting to particular account. FSG controls fields status of document at the time of posting like suppress, require and optional

(3) What configurations are reqd for Extended Withholding tax

a) Wtax type, Wtax code, formulas for wtax calculation, assign wtax types to company code, activate wtax, assign tax codes to wtax accounts and wtax type & wtax code assign to vendor master.

(4) What about the posting periods ?? what configs --> you need to explain the screen?

a) It controls periods of posting in which u want to enter transactions . In that screen u give posting period variant , account group for allow posting , account interval and period year u want to allow for posting .

(5) What config is w.r.t. the field status variant. If he is asking abt a thing.. you wuld need to explain the full screen configs, assignments, usage etc. of that.....



A) FSV is bundle of field status groups. FSG is bundle of predefined requirements at the time of document posting to particular account. FSG controls fields status of document at the time of posting like suppress, require and optional

(6) Tax code configs and Account code assignments --> if you have doneany tax procedures configs : that is taxes on sales or purchases

A) define procedures, assign procedure to country, define tax codes, assign account for tax postings

(7) Tell me the structure of FI and CO in SAP : i.e. the enterprise struct

a) GLïƒ company codeïƒ controlling areaunder GL chart of account, account groups and gl masters

sub ledger account both accounts payable and recivables asset accountingin CO controlling area , cost elements, cost centers , profit centers,

(8) MM entries --> flow At the time of GR, GI, INV. VERIFICATION and Payments

A) if GR stock a/c DrTo gr/ir a/c

IR gr/ir a/c DrTo vendor a/c

Payment vendor a/c DrTo bank a/c invoice verify with

reference of purchase requisition, Purchase order , goods receipt , invoice receipt , payment terms andagreement between vendor and company.

(9) SD entries

A) customer a/c Dr To stock a/c

Bank A/c Dr To customer a/c

(10) Tell me abt the automatic account assignmnets -- MM integration

A) automatic account assignments on basis of valuation area ,valuation modifier,Valuation class and valuation grouping code

(11) Tell me abt the Revenue account determination - SD intergration

A) Revenue account determination on the basis of application ,



condition type , sales org , chart of a/c , account assignment groupand accounting key.

(12) What types of cost element are there - purposes - some costelement catetories in each type?A) primary cost elements â€“ cat 1,11 and 12

Secondary cost elements â€“ cat 43 ,41 and 31

(13) What is the main integrating element between FI and CO --> cost element

A) primary cost element

(14) Differnece between the functionalities of Account Group and field status group

Account group controls interval of accounts under group Field status of company codeview in gl master creation (fs00)

FSG controls fields status of document at the time of posting like suppress, require and optional

(15)*****What is the t-code for closing costing periods CCA--> ENVIRONMENT -->

okp1

Whether controlling area and company code are in a 1:1 relationship or a 1:n relationship, the number of posting periods in both controlling area and company code(s) must be identical. However, special periodsmay vary.

(16)FI has to be closed first aand then only CO

(17) Chart of accounts config--> automatic creation of cost element? Financial accountingïƒ general ledger accountingïƒ generalledgerïƒ master recordsïƒ preparations ïƒ edit chart of account listautomatic creation of cost element- FS00 ( KA01)

(18) Financial Statement Versoin -- purpose etc.

A) for external reporting and fulfill country legal requirements

(19) Number ranges --> FBN1

(20) Automatic payment run --> full screen --> application menu - every field

A) parameters, proposal , edit proposal , payment run and print out.

(21) Config for APPA) TCïƒ FBZP



(22) miro --> Logistics Invoice Verification -->what for ers..A) ersïƒ sales deductions

(23) Downpaymentsïƒ both AP and AR

A) special gl transactions transaction type -A

(24) Difference between Distribution and Assessment cycle... in CCA in CO?

A) both are allocation methods but distribution allocate only primary cost elements and assessment does both primary and secondarycost elements.

(25) Internal Order Types if you put this

A) investment orders, overhead orders, accrual orders and order with revenue

(26) Settlement of Internal Orders –

Configs as to allocationstructure, settlement cost elements config etc. dist passes the entries by cost element and hence looses the tracking at the source but assessment passes the entry w.r.t. the assessment cost ele it dr and crs the same SCE and hence .... the oritianl value in the PCE is stored but the total vlaue becomes ZERO

(27) Business Area concepts and COMP CODE AND BA relations

A) Business Area used for segment level reporting .CO code for external reporting but business area always independent .

(28) Functional areas --> cost of sales accounting

(29) **** RP/RW ïƒ allocated trail bal --> BUSINESS AREA WISE glt0 --> FI for CO --> ccss

30) Depreciation Keys

A) assign to asset master

31) asset master, chart of depn, asset clases, account determinations

A) requirements for configure asset accounting

(32) Credit mgt FD32 (SEE SEOM CONFIGS) (AND STUDY FD32)

A) manage credit limits of customers in a company code

(33) Periodic Processing --> FOR GL, AR, AP

(34) Recurring entrie ïƒ Account Assigment models etc.



(35) Structure of cost centes

a) description, person responsible, dept , std hierarchy, functional area and profit center

(36) Accounts config --> cash discount taken account, lost account, forex gain or loss accounts,

A) account receivable and payable ïƒ business transactionsïƒ out going / in coming payments global settingsïƒ define accounts for cashdiscount taken/ lost

(37) Creation of Doc types

TC : OBA7

(38) Validations and Substitutes ïƒ Validations --> cash account <>0Substituesion --> if COST CENTER =1, PC --> ABCD

(39) Tolerance Groups

A) In SAP we will Tolerance for the following posting s àAP à GL à AR(

40) Automatic clearin confius Global Settings,

GL, AR, AP,some CEA, CCA, IO

(41) ASAP Methodology â€“ steps

A) project preparation , blue print , realization , final preparation and go&live

(42) Importance of stage of project

(43) Transport Strategy ïƒ SE10

(44) What servers... How you transported.. how much team .How bighow complex are the processesA) development , quality/testing and production servers

(45) Tables .... Minimum Tables –BKPF, BSEG, BSIS, BSID, BSIK, BSID,

BSAK, BSAS, BSAS, GLT0, CCSS, CSKA, CSKB, ANLA, LFA1, LFB1, KNA1,KNB1, SKA1, SKB1,

(46) How will you find a table ïƒ SE85, F1-F9, ST05 trace

(47) Data Transfer Procedures --> BDCS ,CATT and LSMW



(48) Go Live and Cutover plan

(49) Functionals Specifications.... and your role witih ABAPer ïƒlogic, what tables, what should be input, what should be output ,output format

(51) Reconciliatoin Ledger

A) It reconcile data between fi and co. it require when u assign more than one com[any code to one controlling area.

What is the stage when we integrate MM & SD with FI?

A) When cross module postings incur2 What other things (exclude the field status variant) make the seating of Document layout?A) POSTING KEY

3 what is the diff. Of Account Assignment Module & Sample Document?

A) In AAM u can change all thing what we have enter but sample document like template u can change amount only here.

4 What is Profit Center & Cost Center? If we want to implement PC then cost center is required to maintain or we want to implement CC accounting the Profit Center is required to maintain?

A) Profit center for internal reporting purpose and cost center for where costs are incur. Yes cc is required for co-pc and co-pca is not compulsory for co-cca.

5 What is hard currency?

A) Some currencies have high inflation effect in that countries they use some other currency for calculation purpose. That other currency we called hard currency for that country.

6 How you given the planning data in COPA module?

A) Through user menu in profitability analysis

7 what is the deprecation Area? Can a deprecation key assign to multiple deprecation area?

A) Deprecation area is what type of dep we want to calculate like book dep or special dep. yes a dep key assign to more than dep area.

8 How many deprecation keys in SAP?

A) number of dep keys we can maintain

10 What is the accounting entry at the time of delivery (PGI) & out going billing?

A) customer a/c Dr



To material stock a/c

11 what is the config steps for interest calculation?

A) maintain interest calculation types, define reference interest rates, define time dependent terms, enter interest values and prepare gl balance interest calculations

13 what is the accounting entry of deprecation run in SAP?

A) depreciation a/c Dr To accumulated depreciation a/c

16 How a sale comes in P.A.?

A) Value fields mapping with SD condition types

18 what the diff. In partial & residual payment?

partial- it leaves the original invoice amount and creates new line item for incoming amount.Residual- it clears original invoice with incoming amount and create new line item for remaining outstanding amount.Case #0002This is a MM customisation. There you have to do double invoice check As active.Once you do that, while doing the F-43, if you enter the same invoice Number again, system will give error message.

whenever the vendor invoice is being entered in f-43 screen , the following errors are taking place.if we give 2 different document dates and keep the same reference number,SAP is posting the Invoice without giving an error message that the reference number has already been used.any ideas on this of how to make the validation at reference number field?

Case#00031. I have successfully configured Asset Accounting2. I was able to purchase the asset .In F-90 iam able to clear the first screen, in the second screen (i.e) in add vendor item after entering the amount , pstky and the asset account number the error is You cannot post to asset in company code 0014 fiscal year 2006 the Diagnosis is " a fiscal year change has not yet been performed in Asset accounting for company code 0014"The procedure is" Check the asset value date" I have even tried using T.codes AJRW and AJAB. so pls tell me the solution as how to slove it.

Have u tried the same transaction with posting date after you have done AJRW.

For ex. if you have done AJRW on 10th april, System will give same error if you are doing any transactions dated prior to 10th. You can do so after 10th april(posting date). As you might be doing the transaction having posting date prior to doing AJRW which will give you the same error.



Try doing transaction with posting date after AJRW.

Re: Steps of Integration

Please follow this.FI-MM integration: OBYC1. creating PO- No FIMM integration2. Goods receipt: DR Stcok, CR: GR/IR3. Invocie Receipt: DR: GR/IR, CR: vendor4. Payment: DR: vendor, CR: Bank FI-SD integration: VKOA1. Sales order: No FI entries2. Goods Issue: CR: Stock, DR: COGS3. Billing: DR Customer, CR: revenue4. PAyment: CR: customer, DR: bank

Trading Partners (Urgent)

Trading partner is normally used to control(payment/transaction) vendor/customer business with the group. Something like group/inter group business. You have to go to master record. for eg, in customer master, go to CONTROL DATA tab so see Acccount Control, in which you have provide trading partner number/reference.

In Business Terms Trading partner is your business partner within Group with whom you are doing business.In order to identify Inter Company transactions Trading partner field is used.

You need to define all the Group Companies as company in SAP and all the defined Companies will be available for selection in Trading partner field.

Trading partner can be defaulted in GL, Customer or Vendor Master.If you need you can populate trading partner at Document level too by doing settings in Document Type Master in T Code OBA7.

Indicator: Business area financial statements required?

Indicator that a balance sheet and/or a P&L is to be created per business area for internal purposes.UseIf the indicator is set, then the "Business area" field is always ready for input, regardless of the field control of the posting keys and of the accounts when you enter documents. This indicator results in required entries in the Controlling (CO), Materials Management (MM), and Sales and Distribution (SD) components.

Case#1



I hav made posting in a gl account without activating OI manage. now i want to activate OI management the system is givig me follwing error " Account balance = 0 but open items exist in the account" " The data contains error, you cannot save "

Solution à

The prerequisite for switching on open item mgt is that account should have zero balance.

But some times error comes while saving master record even if account balance is zero. As per OSS, one possible reason for this is if any documents were reversed during the year. OSS suggests to change this error message to Warning in customization and then save Master record

Case#2

Please let me know, is it essential to have technical knowledge along with Functional Knowledge for a Sap Fuctional Consultant?

Solution à

Yes, it is essenntial to have technical knowledge along with Functional knowledge. It is important in many ways like if you want to have some reports then you must be knowing that which tables are updated, where line items are going, etc. Other thing is to understand SAP properly means how SAP work and how can you get more effective reporting.Case#3

He is having a customer name 'X'. He has already dunned 2 times. and No responce.The company policy is only to dun 4 times.While the 3rd dunning time, the finance manager is asking not to dunn 3rd dunning because it will contain some rough language.That customer is an old one and dun 2nd dunning as his third.Kindly suggest me how to do the configuration? It should show 3rd dunning and the words should be as

2nd dunning.Solutionà

Remove the dunning information from Customer Master or give Dunning information as Dunning levels and date as of First Dunning.

I think this is the only master which is updated while dunning.But please put efforts for testing and if possible try to do such scenarious in the quality server.

Case#4FBL3N shows two open line items for a particular vendor. But, when I try to clear this vendor account via F-44, it only displays one line item. Any ideas why would a line item not show up in f-44 if it appears in fbl3n?Someone suggested check out the payment proposals...maybe a payment is stuck there...not sure how to do that....please advice.SolutionIf payment entry is done by special gl then it not shows in f-44 clearing vendor screen.You have to bring that entry in normal gl & then clear.check & reply if any problem.



Type of Currnecy

Group currencyGroup currency is the currency which is specified in the client table or which is to be entered there.

Hard currencyHard currency is a country-specific second currency which is used in countries with high inflation.

Index based currencyIndex-based currency is a country-specific fictitious currency which isrequired in some countries with high inflation for external reporting (forexample, tax returns).

Global company currency

Global company currency is the currency which is used for an internaltrading partner.For the additional currencies, define the following data:

Currency type

The currency type specifies the role of the additional currency. Anexample of this would be the group currency.

Exchange rate type for translation

The exchange rate type determines which exchange rate stored in thesystem is used for calculating the additional amount fields. As with thelocal currency, you can use the exchange rate type M (averageexchange rate) or any other exchange rate type.

Base currency for translationThe amounts in the additional currencies can be calculated based onthe document currency or on the local currency.

Date for translationFor translating amounts, the exchange rate can be determinedaccording to the translation date, the document date or the postingdate

Additional activities:-The group currency must be stored in the client.



Answers for the below questions (Which in Italic and Bold )1. What is a client in an R3 System? (Multi)

The Highest Level element of all organizational units is the client. The object for authorizations.The object for SD customizing onlyThe object for FICO customizing onlyThe object for SAP programs

2. Name the relevant answers from below which are correct about the company code element in SAPa. It is a unit included in a balance sheet of a legally independent enterprise. It is the central organizational element of Financial Accounting.b. It is linked to controlling area from a year for transactions with particular CO modulesIt is linked to Group Chart of accounts directly.It is linked to Screen Variants for certain transaction entry.It is linked to additional entries to be passed for Purchase Accounting.

3. Name the statements about controlling area which are true in R/3 system?a. It can be deleted from any fiscal year after postingb. It can link many companies to it.c. Controlling areas when created and attached to company code starts reflecting in

transactions.d. Only one standard hierarchy is attached to controlling area level in CO.e. Controlling areas represents the internal management organization structure.

4. State about the Customer master data which is true.

A. Transaction line items records that remain in the database for a long period of time are called master data.

B. Customer master can be linked to Vendor data in transactions only through General Segment data.

C. Payment method for Incoming is defined at customer master level.D. We can define a customer master without Name mentioned on the

master.E. Number ranges to be entered and mandatory for creating and saving customer

master.

5. Cycle definition takes care of following elements Cost center, Internal orderProfit CenterCost ElementSKF

6. Cycle definition is available for following objectsCost Center Distribution



AssessmentInternal OrderProfit Center.

7. Which are period end closing jobs in CO ...AssessmentDistributionReposting Line itemsPeriod LockBA/PC adjustment runs.

8. What You are selected as a consultant and customer wants following process to be activated in SAP. As a consultant please suggest the modules to be implemented. Business Process : Customer who is having one Publicity department for his many companies, interested in getting the figures of Budget for certain exhibition expenses to be done by strict adherance to budget . Publicity expenses to be captured for information-separately and in the original Publicity department.

A. Profit CenterB. Cost CenterC. Cost ElementD. Internal OrderE. Activity types

9. Out of the following masters select the ones which can be blocked for Transactions in FI?Bank MasterCost CenterGL AccountShip to party – customerActivity Type

How many statistical objects can be selected in when you post an FI document where CCtr, PCtr, OM are active .

Only oneOnly TwoDefinitely ThreeMay be threeOnly Three

When you run an assessment (Single)a) You can select multiple cyclesb) You can select multiple cycles and multiple segments within the cycle

c) You can select multiple cycles with selective single segment d) You can select multiple cycles with selective any segments within that

Out of the following masters select the one which can be deleted after going live in easy access menu.



a)All controlling area mastersb) All FI mastersc) All Bank Mastersd) All of the abovee) None of the above

GL account assignments for automatic postings are done at

a) Company code level b) Chart of accounts levelc) Controlling area Leveld) Cost Element LevelYear specific

CO tool –“period lock” can be used to block transactions

at a Controlling area level onlyb) at Controlling area, fiscal year level onlyc)at Controlling area , Fiscal year, Version level onlyd)at Controll-area , Fiscal year, Version, Plan/Actual level only

e) Not possible

15. Out of the following which are correct statements

a) Enjoy SAP screen controls can be made at user level for GL entries only.b) User level settings are possible for currency transactions

c) User level settings are made for Printer defaultsd) User level settings are possible for document display and selection of open items.e) User can edit Period and post to that period in a document without checking any other settings.

16. Posting Keys controls (Multi)

a) Payment Transactionsb) Special GL Transactionsc) Vendor/ Customer/ Asset Transaction d) GL and automatic postings

e) Sales related transactions17. Special GL Transaction definition controls postings (multi)

a) Sub-ledger or GL or Bothb) Only Sub-ledger c) Both Sub-Ledger and GLd) Only GLe) Only sub-ledger account types - D , K , A

18. Which dates are taken into consideration while running a payment run?

a) Customer due date



b) Vendor due datec) Documents entered dated) Vendors creation datee) Value date of document

19. Profit Center can be defaulted from the following – select the right statements

a) Cost Elementb) Cost Centerc) Internal Orderd) Materialse) Activity type

20. Out of the following select the correct statements

a) Business area field is mandatory in Cost center because I linked one of the transaction to a BA in FI.

b) I can change the FI line item in CO by using FI document number for cost objects assignments.

c) I can change the CO line item in CO by using CO document number for cost objects assignments.

d) I can reverse the FI document after doing Reposting of costs in CO. e) I can reverse the FI document linked to the transaction in CO, in FI, by using CO document.

21. Select the correct statement from the following

a) I cannot assign multiple variants for different banks at the same time for selection in an APP run.

b) Business area is not captured in Tax line items c) Payment method cannot control the currency. d)Payment method cannot be defaulted in the Line item of Vendor.

e) Activity manual allocation cannot be reversed.

22. Select the correct statements about currency.

a) Currency is defined at client level and can be controlled at user level for transactions. b) You will be able to define tolerances for employees, vendors and customers currency wise

.c) Clearing settings can be done currency wise d) Currency definition can be done with a validity. e) You will be able to restrict a single Exchange rate type for a currency irrespective of

other settings.23. You are entering a vendor document in enjoy sap screen. Select the correct statements from the following :

a) System copies the document date from posting date as defined in user level settingsb) System copies the Payment term from Vendor master record in Payment screen of

General Data as per vendor code enteredc) System copies the payment method mentioned in the vendor master of company code

data as per vendor code entered



d) System copies the Alternative payment vendor code mentioned in the master in to the header data.

e) Displays name and address and Open item icon on the screen.

24. In the enjoy sap screen the user is not in a position to post the document/save the document even after entering all the amounts and GL accounts . You are requested to give the possible reasons for the same.

a) entered amount not matching b) In the fiscal year variant not defined the period for the yearc) Posting Period Variant is not defined for the company code.d) Payment differences not defined in Tolerance Groupse) Document Type does not allow manual posting or posting keys not allow GL accounts.

25. Tax codes are defined at

Company levelCompany code levelBusiness area levelCost center levelCountry level

26. Out of the following only one is correct. Please select

a) Company codes are created at client level and linked to company codesb) Fiscal year variant is created at client level and periods are defined.c) Period definitions in a fiscal year variant is attached to company codesd) Document types are defined at client level and attached to company codee) Document type controls only the account type, input type and 2 fields mandatory selection.

27. Select the correct statements

a. Posting key definition is only for selecting Debit/ credit posting and account typeGL has can be created only for company code segment.Reconciliation account definition is at GL Account Group and no other definition in GL

is required for the identification it as a reconciliation account. All vendor and customer accounts are maintained automatically by the SAP system as

an open item management.Open item management is available for all accounts in GL and can be changed anytime

as per our wish.

28. Select the correct statements

a. Vendor masters can be created without any posting to be done in accountingb. Vendor/customer accounts can be created and linked to each other in further transactions

c. Vendor accounts can be created and used in Purchasing but posting can be diverted to another vendor account.

d. Field status definition in GL master record is a must for transactions

e. Legal balance sheet is available at Profit center in SAP



29. You are entered a credit memo posting to vendor who is linked to a customer on 1st of May 2003 for your company code but you have not specifically entered the same data in customer till now. You have lots of entries appearing in the vendor and customer account prior to that date of May 2003 also. You are making a manual payment to the vendor – select out of the following which statements are correct.

a. Credit memo document will get the special payment term as per vendor master definition.

b. Customer items will not be shown while paying the vendor as customer is not linked.c. Customer items will be shown only postings after the date 1st May 2003. d. All items of customer and vendor will be available for payment provided payment is same

from 1st May 2003. e. All items of customer and vendor will be available for payment provided Special GL

items are also selected in selection screen irrespective of the activation date.

30. Destination GL – Validate from the following statements.

a. Currency in COA Segment controls all postings to GLb. Reconciliation Account Type definition in Co code segment of GL accounts controls all

Sub- Ledger postings without any Reconciliation for all real entries.c. Event based posting theory of CO controls GL accounts requirementsd. Open item management for P&L account controls the transactions.e. Post Automatically only controls manual entry postings.

31. Validate the following statements about masters.(multi)

a. You can create as many company code segments for a GL a/cb. Customer master automatically takes the account group into the header when it is

created. c. The reason for Co code not appearing in Profit center is because one company is attached

to cost center.d. The reason for co code field not appearing in cost center is because cost center accounting

is not active. e. The reason for co code field not appearing in cost center is because it is not required.

32. Confirm the following statements

a. We can create as many Cash journals for a company code for transactions assigning to a single GL account.

b. Deletion of a parking document is possible provided you give a reversal reason.c. Change of a parking document is allowed at header level also including document type

before saving.d. Grouping of accounts for display in FI is done through – Account Group functionality. e. Grouping of elements for display in CO is done through – Group functionality.



33. One cost center produced multiple activities. Out of the following what are settings required for activating and doing the transaction.

a. Activity types definition with Cost center and Secondary cost elements identified.b. Activity types definition with Cost center categories and Secondary cost elements

identified with full validity.c. Cost center should be available with the category created with validity . d. Planned price or Actual price definition for the period.e. Assessment cycle defined for all cost primary and secondary cost elements.

34. Clarify about the following statements about its correctness.

a. Document Type uses NUMBER ranges definition directly b. Document Types can be defaulted at Company code level for enjoy sap transactions. c. Document Type can be made “ No Default” as user level for transactions. d. Document type controls line item in transactions. e. Document type is to be defaulted in cost center at the time of Assessment and distribution.

35. Confirm the following statements

a. FI Document type is not defaulted anywhere in CO while customizing.b. FI document number is not available in CO for report once it is transferred to CO. c. FI document document type is to be defined in Interest calculations, Bank postings and

program level. d. FI document is year specific for a company code. e. Document type is linked to Field status for header level in document.

36. You are required to confirm the following statements

a. Project views are created for SAP reference IMG.

b. Project IMG is the same SAP reference IMGc. Document types can be maintained in the project IMGd. Status update is done automatically when we complete the customizing in Project IMG.e. SAP reference IMGs contains all configurations including all IS configuration modules by

default.

37 Confirm the following statements about clearing

a. All payment documents are clearing document.b. All clearing documents can be reversed any time by giving reversal reason.c. Clearing document does not create additional automatic entries. d. Automatic clearing rules can be defined at Account type level and for company code level. e. Clearing tolerance is required to be defined at company code level for automatic posting

to another GL account



38. Valuation method in GL for foreign currency controls

a. Exchange Rate types to be used for debit/credit itemsb. Document type for postingc. Decides valuation procedured. Which account types to be considered for calculatione. Which GL account to be posted when revaluated.

39. What are the options available for period-end closing in all cases of Cost Center, Internal order and Profit Center .

a. Distributionb. Assessmentc. Settlementd. Carry forward of balancese. Period Reposting

40. Select from the following correct statements applicable for multiple company code scenario.

A Single Chart of Accounts A Single Tolerance groupA Single Clearing Rule for Account typesA Single Customer masterA Single Internal Order. A Single Business AreaA Single Profit Center

43. Select from the following correct statements applicable for a Multiple company code scenario.

a. Assessment Cycleb. Manual Activity allocationc. Payment to a vendor clearing with customerd. Secondary cost elemente. Primary cost elementf. Internal order Group

44. Select from the following correct statements applicable to customer/vendor relationships.

a. APP runb. Manual Payment c. Enjoy SAP screen entry.

45. Select the objects from below where you will be able to change the defaults created by CO objects in FI line item entry (multi)

a. Business area by Cost Elementb. Business area by Cost Centerc. Business area by Internal Orderd. Business area – manual entry.



e. Cost Center by Cost Element

46. Partial entries can be generated by SAP (multi) Select correct statements

a. during Post with clearingb. during manual paymentc. during automatic paymentd. during automatic clearinge. during post without clearing

47. During the decision of residual posting (multi) Select correct statements

a. You have to enter the balance amount outstandingb. You have to correct the balance on the screenc. Original entry is cleared fully with a new clearing document and new entry is created with

the Payment documentd. Original entry is cleared and new entry is generated with a single document which acts

as FI regular document and a clearing document. e. It is available for display any time as per user level settings

48. Definition a Special GL indicator for Deposits received from Vendor, is done at IMG at

a. Down payments madeb. Down payments receivedc. Other Special GL transactions for Vendorsd. Other Special GL transactions for Customerse. Not possible

49. Confirm the following statements on number ranges (multi)

a. Number ranges for FI document types are maintained at Company code level.b. Number ranges for CO documents are created at individual CO transaction level.c. Number ranges can be same for different Account groups in Customerd. Number ranges can be same for different Account group in Chart of Accountse. Number ranges for all CO masters like Cost centers are maintained at Controlling area

level.

50. Confirm the following about the reversal of documents

a. Payment document can be reversed like any document.b. Mass Reversal functionality is available for GL documents only. c. Reversal of any document can be done in FI once we give reversal reasond. Reversal of document is controlled by parameters in Document type and CO area. e. All documents can be reversed in FI including CO generated documents.

51. Select the correct statement from the following (Single)

a. Fiscal year variant is defined at the company code for period definition.



b. Posting Period variant is defined at the company code for controlling postings of account types.

c. Field status variant is defined at the Client level and controls the GL account postings at company code level.

d. Chart of Accounts can be created with single maintenance language and can be blocked.

e. Financial statement version created separately and attached at Chart of Accounts level.

52. Select the correct statements from the following (Single)

a. Company code is linked to chart of accounts for CO postingsb. Controlling area is linked to chart of accounts for taking FI postingsc. Activity type is linked to Secondary Cost Element for FI postingsd. Vendor is always created in Company code because Purchasing is done in company code. e. Customer master is linked to chart of accounts through Account Group.

53. Out of the following select all which may not be posting to GL for transactions

a. Vendor Payment Requestb. Interest calculation for customerc. Noted item in customerd. Parking of Vendor invoicee. Holding a document in enjoy SAP screen.

54. Out of the following select which is not true for a cost element.

a. GL account for settlement of Internal Orders.b. GL account for Taxesc. GL account Plant and Machineryd. GL account for booking forex valuation diff expenses e. GL account for booking Cash discount.

55. Settlement Profile controls (Single)

a. Valid Receivers with conditionsb. Receivers with amount exceeding certain amountc. Not to be settled irrespective of valid receiver definition with conditionsd. the periodic settlement selection of period and yeare. user who is authorized to do the settlement.

56. Select the correct statements about the Payment to a vendor.

a. Payment screen of General data need to be completed with house bank, payment method and no payment block for making a payment to a vendor.

b. Invoice document should be within a due date of posting date for selection in a manual payment run.



c. You will be able to correct the discount amount shown by the system for the first line item only of selection

d. You will be able to do first line with partial screen and second line with residual screen and post the document.

e. Exchange rate difference cannot be calculated for a partial payment entry.

57. Choose the correct statements from the following.

a. Exchange rate difference cannot be calculated for a partial payment at a company code level.

b. Payment is controlled by a posting key and cannot change. c. Exchange rate type can be defaulted in Document typesd. Exchange rate type can be changed for paymentse. Exchange rate type can be entered for FI documents for posting for conversion.

58. Choose the object which is linked directly to company code.

a. Companyb. Chart of Accountsc. Business Aread. Profit Centere. Cost Element

59. Choose the master which is not linked to Profit Center directly or indirectly for automatic derivation rule .

a. GL account b. Vendor masterc. Cost Elementd. Cost Centere. Customer Master.

60. Balances GL Account and CO Primary Cost Elements are not matching – select out of the following which statements are correct.

a. In FI no entries posted, but in CO entries are posted.b. In FI entries posted, but in CO no entries posted. c. Internal transferred the data to FI object. Hence not matching being a settlement cost

element.d. We have done Assessment in CO, hence it is not matchinge. We have done Distribution in CO hence it is not matching.

61. In FI Invoice transactions are not getting posted to a customer account. Possible reasons can be

a. Customer sales view is not created. b. Customer account is not defined as Cost Element in COc. Customer account is not defined for Profit center accounting.d. Customer account is blocked for payment e. Customer account link to GL not established.



62. You are required to confirm the functionalities available in SAP from the following.

a. Customer can be created with all segments in a single option.b. Mass changes are available for correction to line items of Vendor.c. Mass Reversal is only possible for GL entries and not Vendor entries.d. Multiple customers and vendors can be selected for payment in an APP run with

difference due dates.e. Minimum and maximum amount is stored in House bank level for operations for APP

run.

63. Confirm the following statements in SAP R/3- FI CO module.

a. Documents can changed in CO without any effect in FI.b. Documents can be changed in FI for CO objects after posting.c. In Assessment cycle, we can transfer the Profit center to another internal order which is

statistical.d. In CO Periodic reposting I can control the amounts and actual and plan, periodically

in the cycle definition. e. Every FI posting to a Income and Expense account, value should move to one Real

Object and One Statistical object minimum.

64. Confirm the validity of following statements.

a. you can see the response time of transaction on line.b. Document type display/change/suppress settings in a complex posting transaction are

available at user level. c. In an enjoy SAP screen you can decide your fields for selection.d. You will be able to create the lay-out for document display and default it as user level. e. At user level Printer can be defaulted.

65. Please confirm the following about the Business Area in SAP

a. This is an object for getting internal report from FIb. This is an object for getting some report in COc. Business area can be defaulted in GL account level by a setting in CO directly.d. Business area object is captured in transactions only.e. Business area can be defaulted automatically in all transactions

66. Select the correct statement about the open item management.

a. All accounts in a Chart of Accounts can be defined as Open item managed. b. All vendor accounts can be defined open item managed or not. c. Definition of open item managed account is only for getting line item display. d. We can define company code wise definition for certain GL accounts about the

decision of open item managed or not. e. All Open Item managed accounts should be locked as Auto posting only for correctness.

67. Select the correct statements about the Masters



a. account group of chart of account controls fields of GL account in a company code segment.

b. Account group of Customer controls fields of customer master data of all segments but without customer-vendor relationship fields.

c. Cost Element, Cost Center, Internal Order- all has some field status definition of masters.

d. We can create customers and vendors without company code segment screens and use it for transactions in other modules.

e. Posting of vendor can be diverted to another customer through the field Head office in Accounting screen of Company code segment.

68. Identify the correctness of following relationships.

a. Company code to Controlling Area : n: 1b. Company code to Profit Center : n: 1

c. Company code to chart of accounts : n: 1d. Company code to Cost Element :n: 1e. Company code to Plants : n: 1

69. Documents in FI is not available for payment in APP run. Possible reasons can be

a. Vendor is defined as Head office account. b. Vendor master payment method is only one.c. House bank entry is not available in the master.d. Tolerance group is not maintained for Vendor. e. All Documents are with staggered payment terms

70. Document which contains an exchange difference accounting is asked for display. Not able to see the exchange difference.. Possible reason can be (Single)

a. It is a cross company code transactionb. User level settings c. Lay out is not correctd. There is no differencee. Not possible in SAP

71. A client. ( Single )

a. contain only a single chart of accountsb. can contain multiple charts of accounts in multiple currencies c. only use one exchange rate type if no others definedd. may only have one controlling area

72. State which are the statements as far as controlling area is correct.

a. can add any number of company codes only for Profit center accountingb. can change standard hierarchy of cost center any time after postings are done. c. Date specificd. Can use any fiscal year variant with no respect to company codes assignede. Reconciliation Ledger is activated when we define controlling area in Enterprise

structure



73. Confirm the following statements about the CO

a. Settlement cost elements will be Primary onlyb. Settlement cost elements will be Secondary only.c. Settlement cost elements can be Primary and Secondary.d. Assessment Cost elements can be Primary.e. Distribution cost elements can be Secondary.

74 Out of the following select the one which has carry forward functionality.a. cost element b. vendorc. customerd. cost centere. profit center

75. You have several options for creating G/L accounts . Which of the following statements are correct? [multi]

a. You can create a G/L account for a company code alone.b. You can create a G/L account in chart of accounts.c. You can create a G/L account in a company code using a reference account of another

company code.d. You can create a G/L in a controlling area if you specify the chart of accounts and the

company code.e. You can create a G/L account and simultaneously from the same screen option create a

cost element.

76. Which of the following statements are corrects as regards a Financial statement version.

a. Can be created for a company codeb. Can be created for 2 company codesc. Can be created for multiple company codes using same chart of accounts.d. Can create multiple versions for a chart of accounte. Can be created in such a way all future GL created are taken care.

77. Out of the following select the correct statements

a. Payment Method definition is starting at a client level.b. Payment method at Company code level controls Incoming or Outgoing type.c. Payment method at company code level controls Payment currencies allowed. d. Bank determination is a process through which we can control all or selected

currencies in the transaction also. e. Bank Account ID wise, currency wise posting to GL is possible in a payment

transaction.

78. A user has booked many invoices and credit memos with different payment terms along-with payment methods. Afterwards he is not in a position to make the payment. You efficient suggestions using SAP functionality can be



a. Do Mass Reversal and Do Reversal of Reversal document after correction. b. Remove the payment block in the payment term.c. Change the payment method in documentd. Add the payment method in Vendor mastere. Do mass change for removal of block and pmt method in document and run APP.

79. A posting has been done to a Real internal order and afterwards the user wants to change it to a statistical order. You suggestion can be

a. Create another order statistical, reverse the current document, and post it to new order.

b. Change the internal order in control data to statistical.c. Create another order as statistical, do the reposting line items and include a real

co object also, and change the old internal order to status where no posting is done.

d. It will not make any difference e. Just change the settlement profile assignment with no receivers- that is all no effect.

And no settlement.

80. Regarding currency select correct statements

b. EC/PCA currency, Company code Currency and optional Transaction currency in Profit Center

c. Any Transaction currency can be posted to GL provided it is marked with Balances in all currency.

d. Currency checked for payment to vendor is decided on the basis of user level settings, payment method settings and with house bank id settings

e. In case we require Balance sheet in foreign currency as on a particular date, it can be taken by running a normal Financial statement version report.

f. Transaction currency is also stored in the Profitability analysis – costing based,81.True or False

a. For n:1 relation in Controlling area and co.code all co.code can have different Special periods in FYV. b. Cost centre assignment in std hierarchy is time dependentc. Cost centre category does not controls the transactionsd. Revenue cost elements are secondary cost elementse. Suffix are allowed in std hierarchyf. Only true posting can be made to real objects however cost centre is exceptiong. Sender can be any object in periodic repostingh. Cycle can not iterate with one anotheri. Formula planning supports manual planningj. Overhead can not be applied on statistical orderk. Overhead rules are defined in overhead costing sheetl. Unit costing is more detailed then primary and secondary cost planningm. Order with complete status can not be carried forwardn. Profit centre is not an account assignment objecto. Dummy profit centre can not be created by copyingp. Materials are assigned to profit centre at plant levelq. Task list is central store for all tasks in R/3r. With external use of monitor you can view task list at later stages. Business process definition is part of business blue printt. Report painter uses GUIu. Report group, library , reporting and DB tables are part of report writer.



v. Report structure of report painter includes row, columns and general data structurew. Row includes characteristics value groups where as columns includes basic key figures and also

value groupsx. Report should be included in report group before outputy. Variables are used for flexible reportingz. Report include many sections and each section includes many blocksaa. Vendor specific data can not be copied while using copy with referencebb. Accrued costs can also exist in Controllingcc. Solution Manager provides tools, content, procedures and services to implement and operate SAP

solution.dd. The SAP Solution Manager as an integrated platform centrally running in a customer’s solution

landscape ensures the technical possibility to support distributed systems.ee. SAP Solution Manager provides a single point of access into component systems for design,

configuration and testing activities. ff. SAP Solution Manager enables process-oriented design, configuration, testing and on-going system

monitoring during operations, regardless of the complexity of the system landscape.gg. The Roadmaps allow you to: Navigate in the structure, Filter the structure items by role or subject

area, Display and assign documents etc.hh. Project Preparation means Define project and system landscape ii. Business Blueprint means Identify customer-specific solution based on predefined scenarios in the

Business Process Repository and customer-defined business processes; Document business processes

jj. In Realization phase you Configure; Compare and distribute customizing; Setup test system; Organize tests and perform

kk. You can also display and edit the project documentation from the Business Blueprint phase during configuration.

ll. When you configure your business processes, the system displays the project structure you created for the Business Blueprint.

mm. You use the Customizing Distribution to transfer customizing changes made in one SAP R/3 development system into other development systems in your system landscape.

nn. You organize tests, do initial configurations in the Realization phase.

82. Solution Manager is the answer for followings , select the right ones1. How to ensure successful implementation (functional and technical) as well as

operation of core business process2. How to secure the technical installation and operation3. How to facilitate customer’s IT dept. and other business units4. How SAP can ensure continuous improvement of customers business solution5. How can SAP ensure the best in class support

83. Which of the following about dunning is true.(single)

1. One dunning form can be used for all dunning levels and dunning areas2. Only one dunning form can be used for a said dunning level or dunning area

84. About dunning proposal Say weather true or not…

1.Dunning proposal can be edited , deleted and recreated as often as required.2.Dunning proposal cannot be edited once created.3.Dunning proposal cannot be edited only once before it processed.4.dunning proposal is defined in payment run.

5.All above mentioned options are false

85. In dunning program for clearing between customer and vendor, the following is true….(single)



1. Same dunning procedure must be defined for both customer and vendor.2. Different dunning procedure must be defined for both3. If no procedure is defined both will use default procedure

86 .Which of the folowing steps in not there in ASAP methodology as compared to Solution Manager? (Single)a. Project definitionb. Business Blueprintc. Realizationd. Final preparatione. Go live and support

87 What are the mandatory fields in Cost center masters? (MultipleAnswers)a. Descriptionb. Cost center categoryc. Cost element categoryd. Person responsible

88 Which of the following statements about cash journal is correct? (Single Answer)a. All the transactions are entered and saved during the time of transaction processing and at the end of the day are posted to update the corresponding AR/AP/GL accounts.b. All the transactions are entered and posted during the time of transaction processing and at the end of the day are saved to update the corresponding AR/AP/GL accounts.

89 Which of the statements are true regarding Schedule manager? (Single Answer)a. Tasks are created and assigned to task groupb. Tasks lists are created and assigned to task groupc. Tasks are created and assigned to task group and task group further assigned to task list.d. Task groups are created and asigned to task lists

90. What are the mandatory fields in Cost Element masters? (MultipleAnswers)a. Descriptionb. Cost center categoryc. Cost element categoryd.Person responsiblee. NameWish you all the success in the certificate exam.

Details showing important Tables in SAP



Table Name Description Important Fields

Financial Accounting

FBAS Financial Accounting “Basis”

BKPF Accounting Document Header MANDT / BUKRS / BELNR / GJAHRBSEG Accounting Document Segment MANDT / BUKRS / BELNR / GJAHR /

BUZEIBSIP Index for Vendor Validation of

Double DocumentsMANDT / BUKRS / LIFNR / WAERS / BLDAT / XBLNR / WRBTR / BELNR / GJAHR / BUZEI

BVOR Inter Company Posting Procedure MANDT / BVORG / BUKRS / GJAHR / BELNR

EBKPF Accounting Document Header (docs from External Systems)

MANDT / GLSBK / BELNR / GJHAR / GLEBK

FRUN Run Date of a Program MANDT / PRGIDKLPA Customer / Vendor Linking MANDT / NKULI / NBUKR / NKOAR /

PNTYP / VKULI / VBUKR / VKOARKNB4 Customer Payment History MANDT / KUNNR / BUKRSKNB5 Customer Master Dunning Data MANDT / KUNNR / BUKRS / MABERKNBK Customer Master Bank Details MANDT / KUNNR / BANKS / BANKL /

BANKNKNC1 Customer Master Transaction

FiguresMANDT / KUNNR / BUKRS / GJHAR

KNC3 Customer Master Special GL Transactions Figures

MANDT / KUNNR / BUKRS / GJAHR / SHBKZ

LFB5 Vendor Master Dunning Data MANDT / LIFNR / BUKRS / MABERLFBK Vendor Master Bank Details MANDT / LIFNR / BANKS / BANKL /

BANKNLFC1 Vendor Master Transaction Figures MANDT / LIFNR / BUKRS / GJHARLFC3 Vendor Master Special GL

Transactions FiguresMANDT / LIFNR / BUKRS / GJHAR / SHBKZ

VBKPF Document Header for Document Parking

MANDT / AUSBK / BUKRS / BELNR / GJHAR

FBASCORE Financial Accounting General Services “Basis”

KNB1 Customer Master (Company Code) MANDT / KUNNR / BUKRSLFA1 Vendor Master (General Section) MANDT / LIFNRLFB1 Vendor Master (company Code

Section)MANDT / LIFNR / BUKRS

SKA1 G/L Account Master (Chart of Accounts)

MANDT / KTOPL / SAKNR

SKAT G/L Account Master (Chart of Accounts – Description)

MANDT / SPRAS / KTOPL / SAKNR



MAHNS Accounts Blocked by Dunning Selection

MANDT / KOART / BUKRS / KONKO / MABER

MHNK Dunning Data (Account Entries) MANDT / LAUFD / LAUFI / KOART / BUKRS / KUNNR / LIFNR / CPDKY / SKNRZE / SMABER / SMAHSK / BUSAB

FI-GL-GL (FBS) General Ledger Accounting: Basic Functions- G/L Accounts

SKAS G/L Account Master (Chart of Accounts – Key Word list)

MANDT / SPRAS / KTOPL / SAKNR / SCHLW

SKB1 G/L Account Master (Company Code)

MANDT / BUKRS / SAKNR

FI-GL-GL (FBSC) General Ledger Accounting: Basic Functions - R/3 Customizing for G/L Accounts

FIGLREP Settings for G/L Posting Reports MANDTTSAKR Create G/L account with reference MANDT / BUKRS / SAKNRFI-GL-GL (FFE) General Ledger Accounting: Basic

Functions - Fast Data EntryKOMU Account Assignment Templates for

G/L Account itemsMANDT / KMNAM / KMZEI

FI-AR-AR (FBD)Accounts Receivable: Basic Functions - Customers

KNKA Customer Master Credit Management : Central Data

MANDT / KUNNR

KNKK Customer Master Credit Management : Control Area Data

MANDT / KUNNR / KKBER

KNKKF1 Credit Management : FI Status data MANDT / LOGSYS / KUNNR / KKBER / REGUL

RFRR Accounting Data – A/R and A/P Information System

MANDT / RELID / SRTFD / SRTF2

FI-BL-PT (BFIBL_CHECK_D)

Bank Accounting: Payment Transactions – General Sections

PAYR Payment Medium File MANDT / ZBUKR / HBKID / HKTID / RZAWE / CHECT

PCEC Pre-numbered Check MANDT / ZBUKR / HBKID / HKTID / STAPL

FI-BL-PT-AP(FMZA)

Bank Accounting: Payment Transactions – Automatic Payments

F111G Global Settings for Payment Program for Payment Requests

MANDT

FDZA Cash Management Line Items in Payment Requests

MANDT / KEYNO

PAYRQ Payment Requests MANDT / KEYNO



FI-AA-AA (AA) Asset Accounting: Basic Functions –Master Data

ANKA Asset Classes: General Data MANDT / ANLKLANKP Asset Classes: Fld Cont Dpndnt on

Chart of DepreciationMANDT / ANLKL / AFAPL

ANKT Asset Classes: Description MANDT / SPRAS / ANLKLANKV Asset Classes: Insurance Types MANDT / ANLKL / VRSLFDANLA Asset Master Record Segment MANDT / BUKRS / ANLN1 / ANLN2ANLB Depreciation Terms MANDT / BUKRS / ANLN1 / ANLN2 /

AFABE / BDATUANLT Asset Texts MANDT / SPRAS / BUKRS / ANLN1 /

ANLN2

ANLU Asset Master Record User Fields .INCLUDE / MANDT / BUKRS / ANLN1 / ANLN2

ANLW Insurable Values (Year Dependent) MANDT / BUKRS / ANLN1 / ANLN2 / VRSLFD / GJAHR

ANLX Asset Master Record Segment MANDT / BUKRS / ANLN1 / ANLN2ANLZ Time Dependent Asset Allocations MANDT / BUKRS / ANLN1 / ANLN2 /

BDATU

FI-AA-AA (AA2) Asset Accounting: Basic Functions –Master Data 2.0

ANAR Asset Types MANDT / ANLARANAT Asset Type Text MANDT / SPRAS / ANLAR

FI-AA-AA (AB) Asset Accounting: Basic Functions –Asset Accounting

ANEK Document Header Asset Posting MANDT / BUKRS / ANLN1 / ANLN2 / GJAHR / LNRAN

ANEP Asset Line Items MANDT / BUKRS / ANLN1 / ANLN2 / GJAHR / LNRAN / AFABE

ANEV Asset Downpymt Settlement MANDT / BUKRS / ANLN1 / ANLN2 / GJAHR / LNRANS

ANKB Asset Class: Depreciation Area MANDT / ANLKL / AFAPL / AFABE / BDATU

ANLC Asset value Fields MANDT / BUKRS / ANLN1 / ANLN2 / GJAHR / AFABE

ANLH Main Asset Number MANDT / BUKRS / ANLN1ANLP Asset Periodic Values MANDT / BUKRS / GJAHR / PERAF /

AFBNR / ANLN1 / ANLN2 / AFABER

FI-SL-VSR (GVAL)

Special Purpose Ledger: Validation, Substitution and Rules

GB03 Validation / Substitution User VALUSERGB92 Substitutions MANDT / SUBSTID



GB93 Validation MANDT / VALID

Controlling

AUSP Characteristic Values MANDT / OBJEK / ATINN / ATZHL / MAFID / KLART / ADZHL

CO-KBAS Overhead Cost Controlling

A132 Price per Cost Center MANDT / KAPPL / KSCHL / KOKRS / VERSN / RESRC / KOSTL / DATBI

A136 Price per Controlling Area MANDT / KAPPL / KSCHL / KOKRS / VERSN / RESRC / DATBI

A137 Price per Country / Region MANDT / KAPPL / KSCHL / KOKRS / VERSN / RESRC / LAND1 / REGIO / DATBI

COSC CO Objects: Assignment of Original Costing Sheets

MANDT / OBJNR / SCTYP / VERSN / GJAHR

CSSK Cost Center / Cost Element MANDT / VERSN / KOKRS / GJAHR / KOSTL / KSTAR

CSSL Cost Center / Activity Type MANDT / KOKRS / KOSTL / LSTAR / GJAHR

KAPS CO Period Locks MANDT / KOKRS / GJAHR / VERSN / VRGNG / PERBL

CO-KBASCORE Overhead Cost Controlling: General Services

CSKA Cost Elements (Data Dependent on Chart of Accounts)

MANDT / KTOPL / KSTAR

CSKB Cost Elements (Data Dependent on Controlling Area)

MANDT / KOKRS / KSTAR / DATBI

CSKS Cost Center Master Data MANDT / KOKRS / KOSTL / DATBICSLA Activity Master MANDT / KOKRS / LSTAR / DATBICO-OM (KACC)

Overhead Cost Controlling

COBK CO Object: Document Header MANDT / KOKRS / BELNRCOEJ CO Object: Line Items (by Fiscal

Year)MANDT / KOKRS / BELNR / BUZEI / PERBL

COEJL CO Object: Line Items for Activity Types (by Fiscal Yr)

MANDT / KOKRS / BELNR / BUZEI / PERBL

COEJR CO Object: Line Items for SKF (by Fiscal Year)


COEJT CO Object: Line Items for Prices (by Fiscal Year)


COEP CO Object: Line Items (by Period) MANDT / KOKRS / BELNR / BUZEICOEPL CO Object: Line Items for Activity MANDT / KOKRS / BELNR / BUZEI



Types (by Period)COEPR CO Object: Line Items for SKF (by

Period)MANDT / KOKRS / BELNR / BUZEI

COEPT CO Object: Line Items for Prices (by Period)

MANDT / KOKRS / BELNR / BUZEI

COKA CO Object: Control Data for Cost Elements

MANDT / OBJNR / GJAHR / KSTAR / HRKFT

COKL CO Object: Control Data for Activity Types

MANDT / LEDNR / OBJNR / GJAHR / VERSN

COKP CO Object: Control Data for Primary Planning

MANDT / LEDNR / OBJNR / GJAHR / WRTTP / VERSN / KSTAR / HRKFT / VRGNG / VBUND / PARGB / BEKNZ / TWAER

COKR CO Object: Control Data for Statistical Key Figures

MANDT / LEDNR / OBJNR / GJAHR / WRTTP / VERSN / STAGR / HRKFT / VRGNG

COKS CO Object: Control Data for Secondary Planning

MANDT / LEDNR / OBJNR / GJAHR / WRTTP / VERSN / KSTAR / HRKFT / VRGNG / PAROB / USPOB / BEKNZ / TWAER

CO-OM-CEL (KKAL)

Cost Element Accounting (Reconciliation Ledger)

COFI01 Object Table for Reconciliation Ledger COFIT

MANDT / OBJNR

COFI02 Transaction Dependent Fields for Reconciliation Ledger

MANDT / OBJNR

COFIP Single Plan Items for Reconciliation Ledger

RCLNT / GL_SIRID

COFIS Actual Line Items for Reconciliation Ledger

RCLNT / GL_SIRID

CO-OM-CCA Cost Center Accounting (Cost Accounting Planning RK-S) – What is RK-S

A138 Price per Company Code MANDT / KAPPL / KSCHL / KOKRS / VERSN / RESRC / BUKRS / GSBER / DATBI

A139 Price per Profit Center MANDT / KAPPL / KSCHL / KOKRS / VERSN / RESRC / PRCTR / DATBI

CO-OM-OPA (KABR)

Overhead Orders: Application Development R/3 Cost Accounting Settlement

AUAA Settlement Document: Receiver Segment

MANDT / BELNR / LFDNR

AUAB Settlement Document: Distribution Rules

MANDT / BELNR / BUREG / LFDNR

AUAI Settlement Rules per Depreciation MANDT / BELNR / LFDNR / AFABE



AreaAUAK Document Header for Settlement MANDT / BELNRAUAO Document Segment: CO Objects to

be SettledMANDT / BELNR / LFDNR

AUAV Document Segment: Transactions MANDT / BELNR / LFDNRCOBRA Settlement Rule for Order

SettlementMANDT / OBJNR

COBRB Distribution Rules Settlement Rule Order Settlement

MANDT / OBJNR / BUREG / LFDNR

CO-OM-OPA(KAUF)

Overhead Orders: Cost Accounting Orders

AUFK Order Master Data MANDT / AUFNRAUFLAY0 Enttity Table: Order Layouts MANDT / LAYOUTEC-PCA (KE1)


CEPC Profit Center Master Data Table MANDT / PRCTR / DATBI / KOKRSCEPCT Texts for Profit Center Master Data MANDT / SPRAS / PRCTR / DATBI /

KOKRSCEPC_BUKRS Assignment of Profit Center to a

Company CodeMANDT / KOKRS / PRCTR / BUKRS

GLPCA EC-PCA: Actual Line Items RCLNT / GL_SIRIDGLPCC EC-PCA: Transaction Attributes MANDT / OBJNRGLPCO EC-PCA: Object Table for Account

Assignment ElementMANDT / OBJNR

GLPCP EC-PCA: Plan Line Items RCLNT / GL_SIRID

EC-PCA BS (KE1C)

PCA Basic Settings: Customizing for Profit Center Accounting

A141 Dependent on Material and Receiver Profit Center

MANDT / KAPPL / KSCHL / KOKRS / WERKS / MATNR / PPRCTR / DATBI

A142 Dependent on Material MANDT / KAPPL / KSCHL / WERKS / MATNR / DATBI

A143 Dependent on Material Group MANDT / KAPPL / KSCHL / WERKS / MATKL / DATBI

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